Dry fruit and nut gift boxes this Diwali are experiencing significant changes as pistachio prices have nearly doubled compared to last year, according to The Times of India. The steep rise is attributed to supply disruptions from the West Asia conflict and a smaller US crop, with California's current pistachio crop expected to be only 40% of last year's output. This has led to a 50% increase in pistachio prices in wholesale markets and even higher increases in retail prices. Almond prices have climbed around 20%, while the overall basket of nuts and dry fruits has become 25-40% more expensive year-on-year. As per NDFC-I member Ravindra Mehta, pistachio prices from all origins including Iran, Afghanistan and California have increased, making them the primary challenge for gifting companies this season.
Companies are implementing unprecedented changes to manage costs, as reported by The Times of India. Pistachios have become almost entirely absent from gifting hampers, with retailers replacing them with cheaper alternatives including seeds and berries. Almond quantities are being cut to keep gifting costs under control, while companies have also started cutting the total weight of their hampers. Despite these changes, sales volumes of dry fruit and nut gift packs have grown 5-7% year-on-year, according to industry executives. The India's annual nuts and dry fruits sales, valued at an estimated ₹75,000 crore, see 30-35% of sales take place around Diwali. As per Bola Agro director Rahul Kamath, the grammage reduction is something that we have not seen before, with companies managing costs by reducing gift box sizes to meet corporate budgetary targets.
The price increases have been driven by multiple factors including weather-related disruptions that have reduced global output, higher shipping expenses, lower supplies from Iran and Afghanistan, and the rupee's depreciation, as reported by The Times of India. At the premium end of the market, demand for exotic nuts such as pecans, macadamias and hazelnuts remains on the rise. Flavoured cashews are also gaining popularity, with growing demand for cashews available in customised and unconventional flavours. Industry executives note that while mainstream gifting companies are cutting pack sizes and replacing expensive nuts with more affordable options, the premium segment is witnessing greater demand for exotic varieties and distinctive flavours. Kamath from Bola Agro confirms enquiries for pecan, macadamia and hazelnut increasing this Diwali, along with demand for customised unique flavoured cashews.
