Cashew (Anacardium occidentale) tree grows widely in warm and humid climatic regions of the world. India is leading producer and processor of cashew nuts. Cashew nut processing has undergone lot of developments from traditional to modern processing. Survey was done in various cashew nut processing units in different parts of West Bengal, and a case study is presented regarding economic analysis of a local small scale cashew nut processing plant of 100 kg capacity. Based on the observations, economic analysis of cashew nut processing plant showed that, if the plant be operated with full capacity and efficiency then there would be profit of

` 1329.07 per day, excluding all expenses. This is quite profitable, but the profit margin could be increased more by plant mechanization and modernization. Processing capacity could be increased with significant reduction in labour requirement and processing time by modernizing the processing plants.