As of 2011 there were more than 600 cashew processing units in the city. About 800,000 tonnes of raw cashews are imported to the city for processing every year. 80% of India's export quality cashew kernels were prepared in Kollam.
India stands 2nd in the export of cashew kernels in the world. Kerala state stood 1st in the extent of area under cashew during 1970s. But with the expansion of area under rubber, major area under cashew of the state were converted to rubber plantation. At present Kerala stands 6th position in area and 5th position in production among other states viz Maharashtra, Andra Pradesh, Odisha, Tamil Nadu and Karnataka. Kerala’s contribution to Indian cashew industry is remarkable in the processing and exporting sectors. There are about 800 registered cashew nut processing units in Kerala employing 3 lakhs workers, of which 95% are women.