Pistachios Disappear from Diwali Gift Boxes Amid Soaring Prices
The cost of dry fruits and nuts has surged significantly ahead of Diwali, with prices rising by 25-40% year-on-year. Retailers are adjusting their offerings as they face steep increases in the prices of popular items like pistachios and almonds. This year, many companies are opting for cheaper alternatives, such as seeds and berries, to fill gift hampers.
Pistachios prices almost double
Retail prices for pistachios have nearly doubled compared to last year, primarily due to supply disruptions linked to the West Asia conflict and a reduced crop yield in the United States. Almond prices have also risen by approximately 20%. Despite these challenges, the demand for premium nuts, including pecans, macadamias, and hazelnuts, continues to grow. Flavoured cashews are also becoming increasingly popular. Industry estimates indicate that around 30-35% of India’s annual nuts and dry fruits sales, valued at approximately Rs 75,000 crore, occur during the Diwali season.
Ravindra Mehta, a member of the central governing council at the Nuts and Dry Fruits Council of India, noted that the current pistachio crop in California is expected to be only about 40% of last year’s yield. This has resulted in a 50% increase in pistachio prices in wholesale markets, with retail prices rising even more.
Dry fruit prices on the rise
The price hikes are not limited to pistachios and almonds; the overall basket of nuts and dry fruits has become 25-40% more expensive year-on-year, according to importers, wholesalers, and retailers. Contributing factors include weather-related disruptions that have impacted global production, increased shipping costs, reduced supplies from Iran and Afghanistan, and the depreciation of the rupee.
As sourcing pistachios becomes more challenging and almond quantities are reduced, companies are also cutting the total weight of their gift hampers. Mehta described the reduction in the weight of dry fruit gift packs as unprecedented. While pistachios are being replaced with less expensive options, almonds, cashews, and raisins remain essential components of these hampers. With fixed corporate gifting budgets, reducing the quantity of dry fruits is one strategy to manage costs.
Despite rising prices and changes in gift box compositions, demand remains robust. Rahul Kamath, director at Bola Agro, India’s largest cashew processor, reported a 5-7% year-on-year growth in Diwali sales of nuts and dry fruits. However, he noted that pistachios have largely disappeared from gifting hampers. While mainstream gifting companies are reducing pack sizes and substituting expensive nuts with more affordable options, the premium segment is seeing increased interest in exotic varieties and unique flavours.
