Southeast Asia Information Port (www.dnyxxg.com) – Cambodia's cashew industry is facing both opportunities and challenges brought about by global market volatility. According to a recent report from the Cambodian Cashew Association (CAC), despite a global supply crisis, Cambodian raw cashew prices have seen a significant off-season surge.
The report shows that in the first eight months of 2025, Cambodia exported approximately 941,000 tons of raw cashews, generating about US$1.4 billion in revenue.
However, Uon Silot, Chairman of the Cambodian Cashew Association, pointed out that despite strong export performance, most products are still transshipped through third countries to China, limiting the potential value growth that Cambodia could have achieved.
Tanzania's political turmoil triggers global supply shortages
The main driver of this price surge is the turmoil in the global cashew market caused by a severe disruption to the Tanzanian harvest season. The cashew harvest season in Tanzania typically lasts from October to January of the following year. However, post-election violence in the country has prevented foreign traders from participating in cashew auctions. The absence of international buyers has led to supply shortages, impacting major processing countries such as Vietnam and India.
The Cambodian Cashew Association said on Monday that supply disruptions have forced processors in these markets to fiercely compete for raw materials, driving up global raw cashew prices.
Uon Silot stated, “Typically, Cambodian raw cashew prices decline between September and January as traders focus on imports from Tanzania and Indonesia. However, this year we’ve seen the opposite – prices have surged due to supply chain bottlenecks in Tanzania.”
Data shows that by October 2025, the average price of Cambodian raw cashews had risen to $2,050 per tonne, a significant deviation from seasonal trends.
Intensified Regional Competition Highlights Cambodia’s Key Role
Across Africa and Asia, fierce competition for raw materials is unfolding between Indian and Vietnamese buyers. Vietnamese traders active in Cambodia are leveraging geographical proximity and lower transportation costs to offer higher purchase prices than their Indian counterparts.
India currently holds a competitive advantage in securing supplies due to its long-standing relationships with West African producers and robust contract farming arrangements. Meanwhile, India has steadily increased its cashew imports over the past two years to protect its domestic processing industry and maintain a stable export flow.
Industry observers warn that the global cashew market could face further turmoil if political instability in Tanzania persists. “Continued turmoil will only tighten supply and push prices even higher in the coming months,” Silot warned.
Committed to Long-Term Development, Moving Towards a Global Competitor
This unexpected price surge highlights Cambodia’s increasingly important role as a key supplier in the regional cashew trade, despite the industry’s continued struggle to cope with international market volatility and unpredictable global supply chains.
Cashews remain one of Cambodia’s most promising agro-industrial crops, making a significant contribution to the country’s economic growth and rural livelihoods.
The Cambodian Ministry of Agriculture projects that cashew cultivation will expand to 600,000 hectares by the end of 2025, with annual production exceeding 1 million tons. With its increasing processing capacity and deepening trade partnerships, Cambodia is steadily positioning itself as a competitive player in the global cashew industry.
