South Goa grows premium cashew but most kernel processing happens in Karnataka — exporting raw to Karnataka and importing back as packaged kernel destroys local margin. A small mechanised processing unit captures the loop.
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South Goa's Canacona, Quepem and Sanguem belts produce ~8,000 tonnes of raw cashew annually, almost all exported to processing units in Karnataka because local processing capacity is thin. A small mechanised unit (cooker, sheller, peeler, grader, packer) at 1–2 tonne daily capacity captures the value-add — a kilo of raw cashew at ₹70 becomes a kilo of premium graded W210 kernel at ₹950+ retail.
Capex of ₹10–22 lakh covers the equipment train and shed. PMFME at 35% subsidy directly targets this; the Cashew Development Programme has additional state-specific support. The hard parts: the kernel breakage rate during processing (a skilled operator gets it under 8%, a beginner over 25% — kills margins), seasonal cashew supply variance, and building the buyer base for graded kernel (sell to Mumbai/Delhi importers, not to retail directly until volumes scale). Start with one shift and one machine line; second shift only after the first is consistently producing 8% breakage or under.
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