<p>Liz May, head of policy at Traidcraft, which helps fight poverty through trade, said: "Farmers and workers across the world are suffering every day because of unfair trading practices by supermarkets. It's time the EU took action and set up a regulator with the power to stop abuses by retailers that result in extremely low pay and appalling working conditions."</p> <p>Cashews are America and Europe's favourite nut. But the poor farmers who grow the premium product often bear the greatest risk in the trade.</p> <p>More than 60% of the cashews consumed globally are processed in India. The industry is critical to the country, particularly to the south. The nut is among the country's top four agricultural exports, along with basmati rice, spices and tea. Last year exports were about £500m.</p> <p>Many of the nuts produced in India are sold in supermarkets in the EU, often with value added through roasting and salting. But a 2007 ActionAid report highlighted the pressure from UK retailers to drive down prices. The anti-poverty agency argued that too many of the costs and risks of trading cashews were transferred down to those least able to withstand them, and revealed a rise in unofficial processing units where margins are smaller and hazards higher. Some women were earning the equivalent of 30p a day and suffering permanent damage to their hands from corrosive liquid during handling the nuts.</p> <p>Factories trading with supermarkets in Europe and the US must adhere to safety standards. Workers usually wear hair nets and there are inspection certificates displayed on factory walls.</p> <p>During the deshelling process the nuts produce a caustic liquid that burns the skin. In some cases, hand protection is available, such as alkaline pot ash to counteract the acid; alternatively, some women bandage their hands. In some factories, rubber gloves are available, but in many instances workers have to pay for them and not everyone can afford it.</p> <p>Nair said Indian rules remained strict about factory facilities. "A lot of the companies have a lot of the facilities required, but, as in any country, there will be some companies that follow practices that are required to the letter of the law, and other companies which do not."</p>