Your dry fruits box this Diwali may look very different! With the cost of dry fruits going up, retailers are looking at alternatives to fill in the boxes this time.For example, pistachios are becoming increasingly scarce in Diwali gift hampers this year as a steep rise in prices and supply constraints force companies and retailers to look for cheaper alternatives, including seeds and berries.Almond quantities are also being cut to keep gifting costs under control. Despite these changes, sales volumes of dry fruit and nut gift packs have grown 5-7% year-on-year, according to industry executives.
Pistachios prices almost double
Retail prices of pistachios have almost doubled compared with a year ago, driven by supply disruptions associated with the West Asia conflict and a smaller US crop. Almond prices, meanwhile, have climbed around 20%, according to dry fruit processors and importers.At the premium end of the gifting market, however, demand for exotic nuts such as pecans, macadamias and hazelnuts remains on the rise.Flavoured cashews are also gaining popularity, industry executives told ET. Industry estimates suggest that 30-35% of India’s annual nuts and dry fruits sales, valued at an estimated Rs 75,000 crore, take place around Diwali.“Pistachio have been the game spoiler this year. The prices of pistachio from all origins including Iran, Afghanistan and California have increased,” said Ravindra Mehta, member of central governing council at Nuts and Dry Fruits Council of India (NDFC-I).“The current pistachio crop in California is expected to be only about 40% of last year, which has led to an increase of 50% in pista prices in the wholesale markets and even more in retail,” he told the financial daily.
Dry fruit prices on the rise
The price increase has extended beyond pistachios and almonds. The overall basket of nuts and dry fruits has become 25-40% more expensive year-on-year, importers, wholesalers and retailers said.Factors behind the rise include weather-related disruptions that have reduced global output, higher shipping expenses, lower supplies from Iran and Afghanistan, and the rupee’s depreciation.With pistachios becoming harder to source and almonds being rationed in gift packs, companies have also started cutting the total weight of their hampers.Mehta said the reduction in the weight of dry fruit gift packs was unprecedented. Although pistachios were being replaced with less expensive alternatives, almonds, cashews and raisins remained essential components of such hampers. With corporate gifting budgets fixed, reducing the quantity of dry fruits was one way to keep costs within the allocated limits.Despite rising prices and changes in the composition of gift boxes, demand has remained strong.Rahul Kamath, director at Bola Agro, India’s largest cashew processor, said Diwali sales of nuts and dry fruits had grown by around 5-7% year-on-year, whether measured through overall sales or sales at existing stores. However, pistachios had become almost entirely absent from gifting hampers, he added.While mainstream gifting companies are cutting pack sizes and replacing expensive nuts with more affordable options to manage costs, the premium segment is witnessing greater demand for exotic varieties and distinctive flavours. Kamath said enquiries for pecans, macadamias and hazelnuts had increased this Diwali.He also noted growing demand for cashews available in customised and unconventional flavours.
