Commodity Champions: Decoding the 'nuts' and bolts of India's dry fruit market

Valued at over Rs 9,000 crore, the Indian dry fruits and nuts consumer segment has become a significant player in the market. Currently, India stands as the second-largest consumer of cashews, peanuts, and almonds, closely followed by raisins, dried figs, walnuts, and dates.

The demand for these commodities sees a spike during the winter months, wedding season, and various gifting occasions.

Ravindra Mehta, Director of the International Fruits and Nuts Organisation, Rajat Kamath Bola, Founder and Director of Bolas Agro, and Gunjan Jain, Managing Director, and Chief Executive Officer at VKC Nuts, shared their insights on the industry's outlook, concerns, and demand trajectory.

“The Indian nuts and dry fruits industry is among the fastest-growing industries today. After the advent of COVID-19, there has been a heightened consciousness about health, leading to increased consumption of nuts and dry fruits, which are seen as health pills. This surge has propelled the industry to a valuation of almost ₹9,000 crore at the retail level,” said Jain.

Jain also highlighted the challenges faced by the industry, stating, “India is one of the most heavily taxed countries when it comes to nuts and dry fruits.”

Mehta added, “Post COVID-19, the demand has been so phenomenal that India today consumes about 1.3 million tonne of various nuts and dry fruits. As a champion commodity, we are striving to make it accessible to the masses.”

He further discussed the dynamics of the market, noting, “The visibility of dry fruits as a commodity is creating more buzz among consumers. However, considering the geography and demographics of India, organized trade may have limitations, and this trade will likely remain in the hands of unorganized mom-and-pop stores.”

Bola emphasised the industry's trend toward premiumisation, stating, “Looking at the industry in particular, we have seen premiumisation across the board.”

As the dry fruit market continues to grow and evolve, industry leaders are optimistic about its future, driven by changing consumer preferences and a heightened focus on health and well-being.