Festive season: Pistachio prices nearly double, almonds up 20% on West Asia crisis and US crop shortfall

As per industry estimates, between 30-35% of the estimated Rs 75,000-crore annual sales of nuts and dry fruits in the country take places during the Diwali period.

Pistachio prices have nearly doubled in retail trade from a year ago amid supply disruptions linked to the West Asia war and lower production in the US, while almond prices have risen about 20%, according to dry fruit processors and importers.

Yet, in the niche gifting segment, demand for premium and exotic nuts such as pecans, macadamias and hazelnuts, as well as flavoured cashews, continues to grow, they said. As per industry estimates, between 30-35% of the estimated Rs 75,000-crore annual sales of nuts and dry fruits in the country take places during the Diwali period.

"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 added.

Prices of overall nuts and dry fruits basket have also increased 25-40% year-on-year, due to multiple factors including fall in global production amid weather-related disruptions, increase in shipping costs, fall in supplies from Iran and Afghanistan, and depreciation of the rupee, importers, wholesalers and retailers said.

This, along with the disappearance of pistachio and rationing of almonds, has led to a reduction in the size of the gift boxes.

"The grammage reduction is something that we have not seen before," Mehta said. "Even as pistachios are replaced with cheaper substitutes...almonds, cashews and resins are considered an integral part of dry fruit gifting. As the gifting budget of the corporates is fixed, reducing grammage helped them to meet the budgetary target."

Sales continue to be robust.

"This year we have seen an increase of about 5-7% in the Diwali sale of nuts and dry fruits when we compare the overall sales or even the same store sales of this year against last year," said Rahul Kamath, director at Bola Agro, the largest cashew processor of India. "However, pistachios have almost disappeared from the gifting basket," he added. While the mainstream nuts and dry fruits gifting players try to manage costs, the niche gifting segment has seen a spike in demand for exotic nuts and flavours. "We have seen the enquiries for pecan, macadamia and hazelnut increasing this Diwali," Kamath said.

There is a demand for customised unique flavoured cashews as well, he added.