Can cashew become the next cash crop in Bandarban?
For many farmers in Bandarban, cashew offers a pathway to better incomes, but success depends on more than planting trees. As growers navigate unpredictable weather and volatile markets, ILO's PROGRESS project is equipping them with the skills, tools and collective support needed to strengthen their livelihoods
Cashew has been cultivated in the hilly regions of Bangladesh for many years, but until recently, it carried little economic value. With almost no commercial demand, farmers paid little attention to maintaining their orchards.
The remote hilly areas lacked proper transportation and communication networks, while marketing facilities were virtually non-existent. As a result, once the fruit ripened, much of the cashew harvest was left to rot in the orchards, with farmers unable to bring it to market.
The signing of the Chittagong Hill Tracts Peace Accord in 1997 marked a turning point for the region. Over the past two decades, improved road networks and communication infrastructure have transformed access to the once-isolated hill communities.
Alongside government initiatives, various non-government development organisations have been implementing agricultural projects, helping farmers diversify their livelihoods and improve productivity. As a result, cashew has emerged as one of the region's most promising cash crops.
Today, cashew is cultivated across all seven upazilas of Bandarban district. The crop is particularly widespread in the hilly areas of Rowangchhari, Ruma, Thanchi, and Alikadam, where vast stretches of land are now devoted to cashew orchards.
Yet, turning cashew into a sustainable source of income requires more than expanding cultivation.
Many smallholder farmers continue to struggle with orchard management, irrigation, quality improvement and market access. To address these long-standing challenges, the International Labour Organisation (ILO) launched the Promoting Gender Responsive Enterprise Development and TVET Systems (PROGRESS) project in August 2025.
Implemented on the ground by local development organisation Tajingdong, the initiative supports farmers across Bandarban Sadar, Rowangchhari, Ruma, Thanchi, and Alikadam by strengthening production practices, building farmer organisations and improving access to markets.
The project has already formed 48 farmer cooperatives, bringing growers together to improve cultivation practices and strengthen collective marketing.
Members receive improved cashew seedlings, fertilisers, technical advice, training and farming equipment designed to increase productivity and improve the quality of their harvests. By promoting cooperative-based farming, the initiative also aims to give farmers greater bargaining power while creating stronger links with potential buyers.
A recent visit to Khamtang Para in Rowangchhari Sadar Union illustrates how the initiative is taking shape at the community level. Since the project began, 32 cashew growers from the village have formed the Khamtang Para Cashew Development Committee, creating a platform through which they receive regular training on orchard management, irrigation, pruning, crop care and post-harvest handling.
Through the committee, members receive regular training on orchard management, crop care, and other aspects of cashew cultivation. The group has also opened a bank account with Krishi Bank to manage its collective activities and savings.
To improve irrigation during the growing season, the project's local implementing partner, Tazingdong, has provided the committee with a spray machine worth Tk43,000. To ensure the equipment can be maintained over the long term, committee members have pooled their own savings into the group's bank account, creating a fund for maintenance and operating costs.
"I didn't even have to take the harvest to the market. Traders came directly to our village and loaded it onto their vehicles." Putuli Khiyang, president, Khamtang Para Cashew Development Committee
For Putuli Khiyang, president of the Khamtang Para Cashew Development Committee, cashew cultivation has become an increasingly important source of household income.
Standing in her orchard, she said she has around 1,000 cashew trees. This season, the plantation yielded about 20 maunds of raw cashew nuts, which she sold for Tk5,500 per maund.
"I didn't even have to take the harvest to the market," she told The Business Standard. "Traders came directly to our village and loaded it onto their vehicles."
Not every farmer, however, received the same price, as returns depended largely on the quality of harvested nuts and prevailing market conditions. Farmers involved in the project say improved cultivation practices and better post-harvest management are helping them understand how quality influences market value, although consistent results will require continued investment in orchard care and favourable weather.
"Cashew trees need proper care from the moment they begin to flower," Putuli Khiyang said. "If the orchards aren't tended at the right time, the yields suffer. Irrigation is especially important—without enough water, the developing fruits can drop before they mature.
"When yields are good and the cashew nuts are of high quality, farmers can get better prices. That's why the price varies from one grower to another, depending on the quality of their crop."
For fellow committee member Hompi Khiyang, the difference between a productive orchard and a disappointing harvest lies in consistent management throughout the growing season.
"Cashew orchards demand regular maintenance, especially from January," he said. "The fallen leaves should be gathered and spread around the base of the trees to help retain moisture and keep the roots cool. Dead branches need to be pruned, and the orchard must be kept clean."
His own experience this year illustrates both the potential of the crop and the risks farmers face when weather and limited resources make timely orchard management difficult.
"One of my orchards should have produced around 100 maunds this season, but I harvested only two. I couldn't even recover my production costs."
Like many growers in the hills, Hompi said maintaining an orchard requires continuous investment in irrigation, pruning and nutrient management. Without those inputs, yields can decline sharply, particularly during seasons affected by adverse weather.
Unable to bear those costs, some growers have shifted away from cashew cultivation altogether.
"Some growers have cut down their cashew trees and replaced them with other fruit crops because they couldn't afford the maintenance," he added.
Project officials say these challenges reinforce the need for long-term technical support rather than short-term assistance.
Through farmer cooperatives, the PROGRESS project is introducing improved orchard management practices while encouraging growers to work collectively, share resources and adopt better cultivation techniques that can improve productivity over time.
Farmers in Khamtang Para say around 40 of the village's 85 households now own cashew orchards. One of the most visible benefits of the project has been improved access to irrigation equipment.
The octane-powered irrigation machine supplied through Tajingdong has significantly reduced the time and labour required to water orchards.
Equipped with a 320-foot hose, it can irrigate an orchard within a single day, compared with up to three days previously using conventional pumps. Farmers say this has made it much easier to provide timely irrigation during the critical flowering season, when adequate moisture plays a key role in fruit development.
Farmers involved in the cooperatives say the practical training they receive has helped them better understand the importance of timely irrigation, pruning, soil management and post-harvest handling. While external factors such as weather remain beyond their control, they believe adopting improved cultivation practices is strengthening the long-term productivity of their orchards and helping them produce better-quality nuts for the market.
According to Singnumong Marma, Coordinator of the PROGRESS Project at Tajingdong, the initiative began in August 2025 as a pilot programme covering Bandarban Sadar, Rowangchhari, Ruma, Thanchi and Alikadam. Since then, 48 farmers' cooperatives have been established across the five upazilas, providing growers with technical guidance, training and logistical support aimed at improving both productivity and market readiness.
"At the beginning, farmers were hesitant to join," Marma said. "But now, many are coming forward on their own, eager to become members of the cooperatives."
He said the growing interest reflects farmers' confidence in the cooperative model and the practical benefits they are receiving through the project. If the initiative is extended, additional growers will be brought under the programme.
As part of its next phase, around 30,000 cashew saplings will be distributed among farmers across the five project upazilas. The saplings will be planted in vacant spaces within existing orchards as well as areas where trees have died or been removed. Farmers will also receive pruning machines to help improve orchard management and encourage higher productivity in the coming years.
Although this year's harvest presented significant challenges, project officials say a combination of climate conditions, market timing and quality issues influenced farmers' returns.
Commenting on the lower prices many growers received, Alexius Chiran, Senior Programme Officer at the ILO's Chattogram office, said many farmers sold their produce when market prices were relatively low instead of waiting for more favourable conditions.
"We had assured farmers that we would help connect them with buyers," Chiran said. "But many chose not to wait and sold their harvest early, which meant they did not get the prices we had hoped for. Even if the increase wasn't substantial, they could have earned a little more than what they ultimately received. It would also have created a more competitive market."
To support better marketing, the programme supplied jute sacks for storage and trained farmers in grading techniques, while also advising them on appropriate storage methods to help maintain quality until market prices improved.
Chiran said strengthening farmers' understanding of grading, storage and marketing remains an important part of the project's broader effort to improve incomes through better quality management and stronger market linkages.
"At the same time, farmers need to be more strategic," he added. "They have to be patient and ensure the quality of their produce is maintained."
Officials from the Department of Agricultural Extension (DAE) also pointed out how weather-related factors significantly affect production of cashew nuts.
"The rain we received in April and May damaged the crop," said Abu Nayeem Md Saifuddin, Deputy Director of the Department of Agricultural Extension in Bandarban.
"The trees produced plenty of blossoms, but a large number of them dropped prematurely. Cashew is a drought-tolerant crop, and rainfall during the flowering stage can ruin the flowers. Had there been no untimely rain, the losses would not have been this significant."
According to the Department of Agricultural Extension, cashew was cultivated on 2,711 hectares of land in Bandarban last year, producing 1,781.9 metric tonnes. Production figures for the current fiscal year are still being compiled.
Despite the challenges experienced this season, farmers, government officials and project implementers agree that Bandarban's cashew sector continues to hold significant potential.
Improved road connectivity, growing commercial demand and stronger farmer organisations have already transformed cashew into one of the district's most promising cash crops.
Through the PROGRESS project, ILO and Tajingdong are working to build on that momentum by equipping farmers with practical skills, strengthening cooperatives, improving access to irrigation equipment, introducing quality-enhancing cultivation practices and creating stronger connections with markets.
As additional saplings, equipment and technical support reach more communities, the initiative aims to help farmers build more productive, resilient and sustainable cashew orchards that can generate improved incomes over the long term, even as they adapt to the challenges posed by climate variability and changing market conditions.
