Sameer Bhanushali, Director of Ashapura Agricomm Pvt. Ltd., Navi Mumbai, Maharashtra, discusses dry fruits like raisins, almonds, and cashews that are loved everywhere and have a steady demand. This creates good income opportunities for farmers and traders. But there are also hurdles, such as keeping up with quality, storage, and shipping. Knowing these challenges helps farmers and exporters get better value from the market.
We, as consumers in India, have been consuming dry fruits for ages. During the 1980s and 90s, the consumption of dry fruits was very less. And after that, the consumption, especially after COVID, has increased rapidly. The main dry fruits are cashews, raisins, and walnuts, which are grown in India and also imported. Almonds, pistachios, hazelnuts, figs, apricots, and berries are imported from countries such as North America, the Middle East, Southeast Asia, and Africa. Such imports also bring in a lot of challenges, such as keeping them fresh for the consumers without any issues.
Almonds are not produced in India and are imported. 85% of the almond production is from California, USA. Australia and Iran also produce almonds. Iranian almonds were the first ones to be available in India and are called Mamra badam. Iran could not increase its production, and the USA took over producing almonds in huge quantities. So, whatever we consume today is 90% Californian almonds and 10% Iranian Mamra. California, with its huge production, can keep the price of almonds in a reasonable range. Actually, almonds are cheaper now than they were in 2010. Such low cost has increased the consumption in India and other countries. It is such a healthy snack, with high protein and other minerals, and amino acids. The market in India is put at Rs. 12,000 crores on a B2B level and retail level, Rs. 16 to 17,000 crores, which is massive. India has been the highest buyer of almonds from California for the last four or five years. With awareness of eating healthy food increasing among Indians, the consumption has increased. Almonds are now affordable even for a middle-class family.
Cashew is another dry fruit and is an Indian product. It was grown in large quantities during the 1980s and 90s. Now, with growing demand for the nuts, India is unable to meet the requirements, and so, we are importing the raw cashew nuts from countries like Tanzania, Ghana, the Ivory Coast, Benin, and Guinea-Bissau in Africa. We have processing units all over India and process the nuts to make the final product that is consumed. It makes a very delicious snack. It has an important place in Indian cuisine for its richness and taste. It is also the highest consumed nut in India. At the B2B level, cashew consumption will be about Rs 15 to 16,000 crores. Though many people feel that dry fruits are only for the upper class or elite class of Indians, it is not actually so. Cashews are also affordable for the average Indian consumer.
Walnut is yet another important dry fruit. The walnuts look like a brain, and so it is always associated with brain power, healthy muscles, and the heart. It is very good for your health. It is grown in India in Jammu and Kashmir. It is also largely consumed in India, and to keep pace with the consumption in India, walnuts are also imported from countries like Chile. India has developed manifold in the walnut trade, almost 20% per year. California also produces lots of walnuts and supplies for India. China is yet another country that trades in walnuts as an exporter. India does not buy walnuts from China as the quality of Chinese walnuts is not acceptable here. In the B2B market, the trade would be for Rs. 4,000 Crores.
Then come pistachios. Since the last few years, the consumption of pistachios has increased steeply, and it has become a very healthy and tasty snack with high protein, Omega-3 acids, etc. India does not grow pistachios, and so we import from California and Turkey. The Nuts and Dry Fruits Council of India, formed recently, to promote the consumption and production of nuts and dry fruits in India, feels that India has conditions conducive for the production of pistachios. We want to promote the production of these nuts and dry fruits in India to earn more foreign exchange. The growth of all these nuts should be anywhere between 10 to 25%. With the population also expanding, increased purchasing power of the middle class, and favourable demographics, the future looks exciting for the dry fruits market and consumption. Other dry fruits are consumed largely in India. Raisins grown in Maharashtra, Sangili, and other parts of South India, Andhra, and Karnataka go well with almonds, cashews, and pistachios. It has lots of health benefits, too. The raisin production in India can meet about 60% of the demand. We import high-quality raisins from Afghanistan, Iran, and Turkey, and at times from Chile. Fig and Apricot are the other two dry fruits that are consumed in India, and these are mainly from Afghanistan. The ones imported from Turkey are also accepted in India. The other exotic nuts that we import are hazelnuts, Brazilian nuts, pecans, and macadamias, though their consumption is less. People usually prefer almonds, cashews, pistachios, and walnuts. They are consumed as snacks and ingredients in other food items.
Key Issues in dry fruit trading
There are a few challenges that come with these products. It is not easy to import and keep them fresh for the consumers. The major challenge is the tariffs and duties. It is levied to protect the Indian industry, but the quantity of the nuts that can be imported is limited. When we regulate the tariff, we can bring in more dry fruits. The next challenge is the global sanctions due to wars and political tensions, especially in Iran. So, trading with Iran becomes challenging. We hope things will be regularised soon for the trade to open up with countries like Iran and Afghanistan. The next challenge is the logistics. With ships that carry merchandise being attacked often, many routes and channels have stopped transportation, which makes logistics very expensive and leads to more time. If there is a delay in transit, the quality of the product deteriorates if kept in a container for a long time. We hope the tensions ease out, trade gets smoothened, and customers get good quality products. We have trade agreements with friendly countries to get favourable trade agreements. With unfriendly countries, the trade agreements are not favourable. Countries suffer as they do not secure a trade agreement with a particular country. The local regulations, changing from time to time, are difficult to cope with. When not prepared, this puts the country in jeopardy and takes time to adjust to the regulations. Supply is delayed in this period. It is important to have better regulations. The other challenges include demand and supply mismatch, an increase in price, which affects the consumers. The whole trade may have some adverse impacts, but more benefits are seen.
Dry fruit market dynamics
There is a bumper yield of these crops, which makes them cheap and affordable. Global trade is growing very well. The cashews, walnuts, and almonds are traded in billions of dollars. The prices are under regulation and control as there is an excess supply and less demand. In the next few years, we foresee growth in demand, supply dropping, and there will be an increase in the price of these commodities. Almonds have the highest production in the world, are exported to almost all countries, and maximum trade in the world. Next comes cashew, which is not as huge as almonds. Pistachios have a huge market of about 2 billion pounds globally, while cashews have a 2 billion pound market. Other dry fruits have a smaller market. Walnuts are gaining importance among consumers. Berries and other nuts are also being preferred by people globally, adding to the market presence and economic growth.
Ensuring safe import practices
There are lots of climatic risks, such as global warming, that affect the crops and spoil them, leading to prices shooting up. We, importers, try to foresee the price or the supply that will be challenged and try to plan the purchases accordingly. We can store our supplies at reasonable prices before the price goes up or the supply runs out. As importers, we try to get the products at affordable prices for the consumers and have a margin in the whole deal. There are currency fluctuations also, which will impact the price of the commodity. We try to minimize the losses and reduce the cost to consumers. As importers, we work on giving the best price and quality product. Each commodity will have various regulations for each country to be followed, such as fumigation or phytosanitary requirements, and aflatoxin, along with other parameters. In India, we have the FSSAI that controls the food safety norms for any imported product. They watch the profile, such as consuming, accepting Indian rules and regulations, and labelling requirements. The phytosanitary department and the weights and measures departments look at the other products that meet the Indian standards. The customs department of India and GST should be made known to the importers, as the laws cannot be ignored. Importing the wrong food products can be harmful. The NDFC should offer support and guidance to anyone who wants to venture into the import of dry fruits. The main challenge is the geopolitical tension between countries, because of which the movement of goods is restricted. The next challenge is TAT and the best price. Lack of cold storage is another issue in India, and if the goods are not stored properly, they may get spoiled in hot countries like India. We have to build more cold chains and warehouses to maintain sensitive products for a longer duration of time. We, as importers, are encouraging plenty of cold storage facilities to offer fresh products to the consumers and also to earn our revenue.
Rising consumption across regions
Without globalization, we would not know about the products in other countries or places. We take part in trade shows, seminars, and travel a lot to visit the farms to get the best possible products for Indian conditions. We have been able to get the best products from countries like the USA, Africa, and the Middle East. So, it is through the efforts of importers and globalisation, we have acquired so much information in procuring the tastier products. We will also continue to procure lesser-known products to be introduced in India. About India, the North and West areas of India have been consuming more dry fruits. For the last 20 years, the Southern part of India has been consuming a large amount of dry fruits. With income increasing and awareness of health gaining momentum, the consumption is going up. It was the East of India that was not in the list. But now it is also consuming more. We, importers, feel that our products are making an impact there, too. When we talk about a global perspective, India and China are the major consumers of dry fruits all over the world. We can also include the Middle East, which is improving economically and is a large consumer of dry fruits. Thailand, Indonesia, and Malaysia are also consuming a lot of dry fruits. So, consumption is related to the population and economic growth of any country. Africa is predicted to be yet another powerhouse of dry fruit consumption.
Market insights for importers
We, importers, are responsible and aware of the suppliers and countries. We support countries that follow global sustainability norms, are environmentally aware, and utilisation of resources, a typical example of this is California. Consumers do not know what they consume or where they get it from. The FSSAI in India checks all the products that come into India if they are as per their standards. We also have the additional responsibility of keeping the product well-maintained and hygienically handled, and packed in the right way. Our company is a British Retail Consortium-certified company, and we handle the product with extreme care to ensure good products for the consumers. Processors and transporters are also becoming aware of this. In the days to come, we can see more innovation. Importers need to have the data and information before entering the market. Thorough analysis, study of the products, analysis of the competitor, countries, and the potential of the product should be done. We have been witnessing a lot of innovation in this market. Anyone who wants to enter this market should add value to the product. The pricing has to be dynamic. He can make a profit or a loss. He should know the risks in the field. There is a lot of potential in this market to flourish.
Contact details
Sameer Bhanushali
Director,
Ashapura Agricomm Pvt Ltd
Mob: 98192 01444
Email: info@ashapuracommodities.com
We, as consumers in India, have been consuming dry fruits for ages. During the 1980s and 90s, the consumption of dry fruits was very less. And after that, the consumption, especially after COVID, has increased rapidly. The main dry fruits are cashews, raisins, and walnuts, which are grown in India and also imported. Almonds, pistachios, hazelnuts, figs, apricots, and berries are imported from countries such as North America, the Middle East, Southeast Asia, and Africa. Such imports also bring in a lot of challenges, such as keeping them fresh for the consumers without any issues.
Almonds are not produced in India and are imported. 85% of the almond production is from California, USA. Australia and Iran also produce almonds. Iranian almonds were the first ones to be available in India and are called Mamra badam. Iran could not increase its production, and the USA took over producing almonds in huge quantities. So, whatever we consume today is 90% Californian almonds and 10% Iranian Mamra. California, with its huge production, can keep the price of almonds in a reasonable range. Actually, almonds are cheaper now than they were in 2010. Such low cost has increased the consumption in India and other countries. It is such a healthy snack, with high protein and other minerals, and amino acids. The market in India is put at Rs. 12,000 crores on a B2B level and retail level, Rs. 16 to 17,000 crores, which is massive. India has been the highest buyer of almonds from California for the last four or five years. With awareness of eating healthy food increasing among Indians, the consumption has increased. Almonds are now affordable even for a middle-class family.
Cashew is another dry fruit and is an Indian product. It was grown in large quantities during the 1980s and 90s. Now, with growing demand for the nuts, India is unable to meet the requirements, and so, we are importing the raw cashew nuts from countries like Tanzania, Ghana, the Ivory Coast, Benin, and Guinea-Bissau in Africa. We have processing units all over India and process the nuts to make the final product that is consumed. It makes a very delicious snack. It has an important place in Indian cuisine for its richness and taste. It is also the highest consumed nut in India. At the B2B level, cashew consumption will be about Rs 15 to 16,000 crores. Though many people feel that dry fruits are only for the upper class or elite class of Indians, it is not actually so. Cashews are also affordable for the average Indian consumer.
Walnut is yet another important dry fruit. The walnuts look like a brain, and so it is always associated with brain power, healthy muscles, and the heart. It is very good for your health. It is grown in India in Jammu and Kashmir. It is also largely consumed in India, and to keep pace with the consumption in India, walnuts are also imported from countries like Chile. India has developed manifold in the walnut trade, almost 20% per year. California also produces lots of walnuts and supplies for India. China is yet another country that trades in walnuts as an exporter. India does not buy walnuts from China as the quality of Chinese walnuts is not acceptable here. In the B2B market, the trade would be for Rs. 4,000 Crores.
Then come pistachios. Since the last few years, the consumption of pistachios has increased steeply, and it has become a very healthy and tasty snack with high protein, Omega-3 acids, etc. India does not grow pistachios, and so we import from California and Turkey. The Nuts and Dry Fruits Council of India, formed recently, to promote the consumption and production of nuts and dry fruits in India, feels that India has conditions conducive for the production of pistachios. We want to promote the production of these nuts and dry fruits in India to earn more foreign exchange. The growth of all these nuts should be anywhere between 10 to 25%. With the population also expanding, increased purchasing power of the middle class, and favourable demographics, the future looks exciting for the dry fruits market and consumption. Other dry fruits are consumed largely in India. Raisins grown in Maharashtra, Sangili, and other parts of South India, Andhra, and Karnataka go well with almonds, cashews, and pistachios. It has lots of health benefits, too. The raisin production in India can meet about 60% of the demand. We import high-quality raisins from Afghanistan, Iran, and Turkey, and at times from Chile. Fig and Apricot are the other two dry fruits that are consumed in India, and these are mainly from Afghanistan. The ones imported from Turkey are also accepted in India. The other exotic nuts that we import are hazelnuts, Brazilian nuts, pecans, and macadamias, though their consumption is less. People usually prefer almonds, cashews, pistachios, and walnuts. They are consumed as snacks and ingredients in other food items.
Key Issues in dry fruit trading
There are a few challenges that come with these products. It is not easy to import and keep them fresh for the consumers. The major challenge is the tariffs and duties. It is levied to protect the Indian industry, but the quantity of the nuts that can be imported is limited. When we regulate the tariff, we can bring in more dry fruits. The next challenge is the global sanctions due to wars and political tensions, especially in Iran. So, trading with Iran becomes challenging. We hope things will be regularised soon for the trade to open up with countries like Iran and Afghanistan. The next challenge is the logistics. With ships that carry merchandise being attacked often, many routes and channels have stopped transportation, which makes logistics very expensive and leads to more time. If there is a delay in transit, the quality of the product deteriorates if kept in a container for a long time. We hope the tensions ease out, trade gets smoothened, and customers get good quality products. We have trade agreements with friendly countries to get favourable trade agreements. With unfriendly countries, the trade agreements are not favourable. Countries suffer as they do not secure a trade agreement with a particular country. The local regulations, changing from time to time, are difficult to cope with. When not prepared, this puts the country in jeopardy and takes time to adjust to the regulations. Supply is delayed in this period. It is important to have better regulations. The other challenges include demand and supply mismatch, an increase in price, which affects the consumers. The whole trade may have some adverse impacts, but more benefits are seen.
Dry fruit market dynamics
There is a bumper yield of these crops, which makes them cheap and affordable. Global trade is growing very well. The cashews, walnuts, and almonds are traded in billions of dollars. The prices are under regulation and control as there is an excess supply and less demand. In the next few years, we foresee growth in demand, supply dropping, and there will be an increase in the price of these commodities. Almonds have the highest production in the world, are exported to almost all countries, and maximum trade in the world. Next comes cashew, which is not as huge as almonds. Pistachios have a huge market of about 2 billion pounds globally, while cashews have a 2 billion pound market. Other dry fruits have a smaller market. Walnuts are gaining importance among consumers. Berries and other nuts are also being preferred by people globally, adding to the market presence and economic growth.
Ensuring safe import practices
There are lots of climatic risks, such as global warming, that affect the crops and spoil them, leading to prices shooting up. We, importers, try to foresee the price or the supply that will be challenged and try to plan the purchases accordingly. We can store our supplies at reasonable prices before the price goes up or the supply runs out. As importers, we try to get the products at affordable prices for the consumers and have a margin in the whole deal. There are currency fluctuations also, which will impact the price of the commodity. We try to minimize the losses and reduce the cost to consumers. As importers, we work on giving the best price and quality product. Each commodity will have various regulations for each country to be followed, such as fumigation or phytosanitary requirements, and aflatoxin, along with other parameters. In India, we have the FSSAI that controls the food safety norms for any imported product. They watch the profile, such as consuming, accepting Indian rules and regulations, and labelling requirements. The phytosanitary department and the weights and measures departments look at the other products that meet the Indian standards. The customs department of India and GST should be made known to the importers, as the laws cannot be ignored. Importing the wrong food products can be harmful. The NDFC should offer support and guidance to anyone who wants to venture into the import of dry fruits. The main challenge is the geopolitical tension between countries, because of which the movement of goods is restricted. The next challenge is TAT and the best price. Lack of cold storage is another issue in India, and if the goods are not stored properly, they may get spoiled in hot countries like India. We have to build more cold chains and warehouses to maintain sensitive products for a longer duration of time. We, as importers, are encouraging plenty of cold storage facilities to offer fresh products to the consumers and also to earn our revenue.
Rising consumption across regions
Without globalization, we would not know about the products in other countries or places. We take part in trade shows, seminars, and travel a lot to visit the farms to get the best possible products for Indian conditions. We have been able to get the best products from countries like the USA, Africa, and the Middle East. So, it is through the efforts of importers and globalisation, we have acquired so much information in procuring the tastier products. We will also continue to procure lesser-known products to be introduced in India. About India, the North and West areas of India have been consuming more dry fruits. For the last 20 years, the Southern part of India has been consuming a large amount of dry fruits. With income increasing and awareness of health gaining momentum, the consumption is going up. It was the East of India that was not in the list. But now it is also consuming more. We, importers, feel that our products are making an impact there, too. When we talk about a global perspective, India and China are the major consumers of dry fruits all over the world. We can also include the Middle East, which is improving economically and is a large consumer of dry fruits. Thailand, Indonesia, and Malaysia are also consuming a lot of dry fruits. So, consumption is related to the population and economic growth of any country. Africa is predicted to be yet another powerhouse of dry fruit consumption.
Market insights for importers
We, importers, are responsible and aware of the suppliers and countries. We support countries that follow global sustainability norms, are environmentally aware, and utilisation of resources, a typical example of this is California. Consumers do not know what they consume or where they get it from. The FSSAI in India checks all the products that come into India if they are as per their standards. We also have the additional responsibility of keeping the product well-maintained and hygienically handled, and packed in the right way. Our company is a British Retail Consortium-certified company, and we handle the product with extreme care to ensure good products for the consumers. Processors and transporters are also becoming aware of this. In the days to come, we can see more innovation. Importers need to have the data and information before entering the market. Thorough analysis, study of the products, analysis of the competitor, countries, and the potential of the product should be done. We have been witnessing a lot of innovation in this market. Anyone who wants to enter this market should add value to the product. The pricing has to be dynamic. He can make a profit or a loss. He should know the risks in the field. There is a lot of potential in this market to flourish.
Contact details
Sameer Bhanushali
Director,
Ashapura Agricomm Pvt Ltd
Mob: 98192 01444
Email: info@ashapuracommodities.com
Last edited: