Festive gifting gets costlier as prices of nuts, dry fruits zoom

PUNE: Gifting nuts and dry fruits will cost more this festive season as prices have risen 20-40% over last year across varieties. Walnuts are dearer by about 40% on account of global supply disruptions, while raisin prices have nearly doubled due to lower domestic output. Cashews and pistachios are also up 15-20%. Industry executives said that a GST cut from 12% to 5% could bring down prices by about 7% for consumers.

Walnut and raisin prices have surged 50% year-on-year. A drop in exports from Chile, lower US production, and disruption of imports from Afghanistan following the closure of the Wagah border have squeezed walnut supplies.

"Walnuts have become costlier as origin prices in the US and Chile are up 50-60%. The impact in India is sharper as we levy 100% import duty on walnuts," said Gunjan Jain, president, Dried Fruits and Nuts Council (DFNC-India).

Raisin prices have almost doubled due to a fall in domestic production.

India's raw cashew imports are expected to rise 15%. "Many importers bought larger volumes between June and August as the industry faced shortages in April and May. Against the usual 11-12 lakh tonne, imports may touch 13-14 lakh tonne in 2025," said Bola Rahul Kamath, president, All India Cashew Association.

A GST reduction on walnuts and almonds from 12% to 5% could soften prices by 5-7%, industry leaders said. "If rates on nuts, dry fruits and seeds fall to 5%, the benefit can be passed on to consumers," Jain said.

Currently, India levies 12% GST on all nuts except raisins, walnuts and cashews produced locally. "The sector is dominated by small and MSME units and employs about 5 lakh people," Jain added, after making a representation before the GST council on Wednesday.

India imports raw almonds, walnuts and cashews and processes them domestically. Industry estimates show annual consumption of nuts and dry fruits is growing 5-6%, driven by health-conscious consumers post Covid.