Kerala is poised to potentially introduce its own native cashew liquor, drawing inspiration from Goa's famed 'Feni'. The Payyavoor Service Cooperative Bank in Kannur has received the final go-ahead to commence production, with the aim to launch the product by December, during the next cashew season. This initiative seeks to capitalize on the state's abundant cashew cultivation and transform it into a signature beverage, much like how Feni has become synonymous with Goa.

The concept was initially proposed in 2016, born from a desire to harness the region's cashew production for a distinctive spirit. While the Kerala government granted approval in 2022, bureaucratic delays stalled progress. Now, with finalized tax rates and necessary clearances secured, production is set to begin soon. T M Joshi, President of the cooperative bank, mentioned that the production cost per liter is estimated at ₹200–₹250, and the retail prices are expected to be between ₹500 and ₹600, factoring in a 100% excise duty.

A four-acre plot in Kanjirakolly has been designated for the distillery. Joshi, who conceptualized the project in the 1990s, envisions it empowering local farmers and generating a new revenue stream. The liquor will be crafted exclusively from pure cashew apples harvested between December and May, ensuring quality and authenticity.

While "Kannur Feni" is the preferred name, legal considerations persist due to Goa's patent on the term "feni." The cooperative is consulting legal experts to determine the final branding of the product.

The production of cashew liquor is not only expected to boost the local economy but also provide significant benefits to cashew farmers. Eighty percent of the profit from Feni production will be passed on to the farmers. Loans and subsidies will be provided to expand cashew farming. The cashew season, which runs from December to May, will be the period during which Feni production takes place. Additionally, a cashew factory will be established, and cashew waste will be processed into organic fertilizer.

The Kerala State Cashew Development Corporation (KSCDC) had also explored a similar project, submitting a detailed project report to the government and the State Excise Department, highlighting the potential to generate substantial revenue and employment opportunities. The KSCDC project aimed to position Feni as a premium alcoholic beverage at an affordable price, targeting the Kerala market initially and later expanding to other South Indian states.

The production of low-strength alcohol from locally produced fruits has been encouraged by the Kerala government, with the Excise Department actively promoting the initiative. This aligns with the state's liquor policy, which emphasizes increasing local liquor production to meet demand and generate employment.

This move towards producing native cashew liquor reflects a broader trend of states recognizing the potential of local resources to create unique alcoholic beverages. Just as Goa has successfully branded Feni, Kerala aims to establish its own identity in the liquor market while supporting its agricultural community.