New Delhi: As Diwali approaches, consumers looking to gift traditional dry fruit hampers are in for a sticker shock. In the span of just one year, the prices of dry fruits and nuts in India have witnessed a massive spike, forcing companies to shrink the size of their festive gift boxes.
Compared to last Diwali, the overall prices of dry fruits have surged by an average of 10% to 30%, with certain premium items nearly doubling in cost. The sharpest increase has been observed in pistachios, while popular choices like cashews and almonds have also become significantly more expensive.
According to industry experts quoted by The Economic Times, the retail price of pistachios has almost doubled in the past year. This massive hike is largely attributed to supply chain disruptions caused by geopolitical tensions in the Middle East and a severe drop in production. Traders point out that the pistachio crop in California is estimated to be around 40% lower this year, causing wholesale prices to jump by nearly 50%, with retail prices mirroring an even steeper climb. Almond prices have also seen a 20% uptick.
Traders state that the entire range of nuts and dry fruits has become 25-40% more expensive due to erratic global weather conditions, rising shipping freight costs, disrupted supplies from Iran and Afghanistan, and a weakening Indian rupee making imports costlier.
To cope with the inflating costs without breaching corporate gifting budgets, companies are adopting “shrinkflation.” The quantities of dry fruits inside standard festive gift boxes have been noticeably reduced. Pistachios are increasingly being swapped out for cheaper alternatives, and the volume of almonds is being cut down.
Despite the soaring prices, the demand for these festive staples remains robust. Rahul Kamath, Director of Bola Agro, India’s largest cashew processor, noted a 5-7% increase in the sales of dry fruits and nuts this Diwali compared to the previous year. Meanwhile, the premium gifting segment is witnessing a rising demand for exotic nuts like pecans, macadamias, and hazelnuts, alongside flavoured cashews.
The dry fruit and nut industry in India is estimated to be worth around Rs 75,000 crore annually, with nearly 30-35% of its total sales occurring during the Diwali season alone.