Bureaucratic Delays Trigger Cashew Shortage and Price Shock

Sri Lanka is grappling with a severe shortage of raw cashew nuts as prolonged bureaucratic delays disrupt imports and strain local supply chains. Industry stakeholders warn that restrictive import licensing often valid for only three months—has rendered timely procurement nearly impossible. Repeated postponements in issuing licenses during the 2025 off-season have left factories without raw materials, despite rising consumer and tourist demand.

Domestic cashew production has also declined due to erratic weather patterns, increasing reliance on imports from countries such as India, Tanzania, and Ghana. However, administrative hurdles, including lengthy customs procedures and certification requirements, have slowed shipments. As a result, market prices have surged, with traders predicting further increases ahead of the April festive season.

Cashew producers argue that unless authorities streamline import approvals and extend license validity, shortages will persist until the local harvest begins in May or June. Thousands of workers in shelling and processing face job losses as factories remain idle.

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