Cashew nut farming in India is mostly carried out in small and marginal holdings. Energy consumption in the small scale cashew nut processing industry is very high and is mainly due to the high energy consumption of the drying process. The drying operation provides a lot of scope for energy saving and substitutions of other renewable energy sources. Renewable energy-based drying systems with loading capacity of 40 kg were proposed for application in small scale cashew nut processing industries. The main objective of this work is to perform economic feasibility of substituting solar, biomass and hybrid dryer in place of conventional steam drying for cashew drying. Four economic indicators were used to assess the feasibility of three renewable based drying technologies. The payback time was 1.58 yr. for solar, 1.32 for biomass and 1.99 for the hybrid drying system, whereas as the cost-benefit estimates were 5.23 for solar, 4.15 for biomass and 3.32 for the hybrid system. It was found that it is of paramount importance to develop solar biomass hybrid dryer for small scale processing industries.