Pune: Diwali gift boxes are set to look a little different this year, with pistachios largely missing and almonds being rationed as prices of key dry fruits surge. Companies and retailers are filling the gaps with seeds and berries, yet overall gifting volumes for nuts and dry fruits are still up 5–7 per cent from last year, according to industry executives.
Dry fruit processors and importers said retail pistachio prices have almost doubled over the past year, driven by supply disruptions tied to the West Asia war and a weaker harvest in the US. Almond prices have climbed about 20 per cent over the same period.
Ravindra Mehta, a member of the central governing council of the Nuts and Dry Fruits Council of India (NDFC-I), described pistachios as the biggest disruptor of the season. He said prices have risen across all major sources, including Iran, Afghanistan and California. California’s current crop is expected to be only around 40 per cent of last year’s, pushing wholesale prices up by 50 per cent, with retail prices rising even further, he said.
The broader nuts and dry fruits basket has become 25–40 per cent costlier year-on-year, according to importers, wholesalers and retailers. They attributed the rise to lower global output following weather disruptions, higher shipping costs, reduced supplies from Iran and Afghanistan, and a weaker rupee.
These pressures have led to smaller gift boxes. Mehta said the industry had never before seen such a cut in grammage. While pistachios are being swapped for cheaper alternatives, almonds, cashews and raisins remain essential to any dry fruit hamper, he noted. Since corporate gifting budgets are fixed, reducing the weight of each box has allowed companies to stay within their spending limits.
Despite the higher prices, sales have held up well. Rahul Kamath, director at Bola Agro, India’s largest cashew processor, said Diwali sales of nuts and dry fruits have grown by about 5–7 per cent this year, both overall and on a same-store basis. He added, however, that pistachios have all but disappeared from gift hampers.
While mainstream brands work to contain costs, the niche gifting segment is seeing rising interest in exotic varieties. Kamath said enquiries for pecans, macadamias and hazelnuts have increased this Diwali, along with demand for customised, uniquely flavoured cashews.
The festive period remains crucial for the industry. Industry estimates suggest that 30–35 per cent of India’s roughly Rs 75,000-crore annual nuts and dry fruits sales take place around Diwali.