The consumption of dry fruits saw a 25% increase in 2023, marking the most significant rise in five years. This upturn is attributed to heightened health consciousness among consumers following the pandemic. People are increasingly turning to these mineral and vitamin-rich sources, well-known for their immune-boosting properties, as reported by traders in Mumbai and Delhi’s Khari Baoli market.
Consumers who previously enjoyed dry fruits occasionally are now increasing their spending on them, becoming regular buyers. This shift in consumer behavior is contributing to an overall surge in demand, as highlighted by industry insiders.
“There is a surge in consumption of dry fruits this year… The supply side is smooth, and prices have remained stable, which is attracting the consumers to have more dry fruits,” said Vijay Bhuta, president of the Mumbai Dry Fruits and Dates Merchants Association. “Awareness about the healthy properties of dry fruits has increased post Covid.”
Dry fruits in demand:
In fact, there has been a recent upsurge in demand over the past few days, following the government’s issuance of an advisory regarding a new Covid subvariant and reports indicating a rise in infections across various states, as noted by traders. Approximately 80% of the local demand for dry fruits is fulfilled through imports. Almonds and walnuts stand out as the top-selling dry fruits in the country.
Almond consumption has surged as more Indians identify the eating of this nutrient-rich crunchy nut, which is packed with protein, fiber, Vitamin E, and antioxidants, aligning it with a healthy lifestyle. According to figures from the Ministry of Commerce and Industry, almond imports totalled $531.06 million during the April-October period, covering the first seven months of this fiscal year.
Traders anticipate that imports in fiscal year 2024 will surpass the FY23 figure of $1.01 billion. Prior to the pandemic, in FY20, almond imports had totaled $874.67 million.
In the first seven months of this fiscal year, India imported walnuts amounting to $64.91 million, already exceeding the total imports of $63.29 million in the entire previous fiscal year ending on March 31, 2023. Before the pandemic, in FY20, the value of India’s total walnut imports, known for their heart- and gut-healthy properties, was $69.38 million.
Walnut imports are expected to surpass $85 million this fiscal year, according to Bhuta. “The demand is robust,” he said.
The US has become a key supplier of almonds and walnuts to India, he said.
In October, a report from the US Department of Agriculture indicated that the almond and walnut crops in the country were each expected to increase by 1%. The report also forecasted a 6% rise in American almond exports and a 15% surge in walnut shipments, with India being among the largest importers.
Vikas Bansal, the general secretary of the Indian-Afghan Chamber of Commerce, said the US now accounts for nearly 70-80% of the dry fruit imports of India. The share of Afghanistan, which was another major supplier, has come down.
“Import of dry fruits has dwindled from Afghanistan as their quality does not match with the US,” he said. “And, dry fruits from Iran are too costly.”
Sanjay Sharma, a wholesaler in the largest dry fruit market in the country, Khari Baoli in Delhi, mentioned that there is a robust demand for cashew nuts as well.
Meanwhile, prices of Iranian pistachios have been on the rise since the start of 2023, attributed to a decline in water availability for the crop in that country. Dry fruit traders noted that wells have dried up, and production in Iran’s crucial Kerman region may be adversely affected.
Imports of pistachios amounted to $120.13 million in the first seven months of this fiscal year, compared to total imports of $173.84 million in FY20.
The stability in prices of almonds and walnuts has contributed to an increased demand, despite the rising costs of certain key fresh fruits.
“Instead of apples, whose price has risen this year, people are having almonds.
The price of a kg of almonds is INR 600. A family of four can have 100 gm of almonds per day, which is more pocket-friendly,” Bansal said.
One kg of good-quality walnut costs INR 1,000-1,300. The price of apples from Himachal Pradesh and Jammu & Kashmir has surged this year due to a crop loss after heavy rain during cultivation.
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A 25 kg box of apples this year is priced at INR 2,500, compared to INR 1,700 last year, according to Ravinder Chauhan, the president of the Apple Growers’ Association of India.
Bhupesh Gupta, the proprietor of the 53-year-old Bellanuts Dry Fruits in Delhi’s Karol Bagh, mentioned that foot traffic has seen a further increase in the past few days, spurred by reports of Covid cases.
“Almond is the most preferred dry fruit among customers,” he said.