Diwali Dry Fruit Hampers to Feature More Cashews and Raisins Amid Supply Constraints

As the festive season approaches, the composition of traditional dry fruit gift boxes is undergoing a noticeable shift. Industry stakeholders indicate that consumers and corporate buyers are likely to opt for gift hampers featuring a higher proportion of cashews, raisins, and makhanas, using pricier items like pistachios and almonds primarily as a premium topping.

According to Vijay Jain, President of The Nuts and Dry Fruits Council (India) (NDFC-I), festive baskets are expected to cost about 10 per cent more overall. Price increases over the past year have been uneven, with pistachios rising by 30 to 40 per cent, almonds increasing by around 20 per cent, and dates, pecans, and pumpkin seeds seeing a 5 to 10 per cent bump. Meanwhile, prices for cashews, walnuts, raisins, and makhanas have remained stable compared to last year.

Rajeev Pabreja, Managing Director of Commodity Trading Corporation, attributed the supply pressures to a 40 to 50 per cent drop in pistachio production and a 10 per cent decline in almond output. Slow arrivals from Iran and Afghanistan, coupled with freight charges from Iran rising up to 10 times and flight charges hitting ₹200 to ₹300 per kilogram, have pushed dry fruit prices up by at least 20 per cent and dragged imports lower by 10 per cent this year.

Trade sources note that while pistachio production in Iran and the US has faced challenges, price increases for cashews and raisins remain marginal. Jain added that traders and retailers have absorbed part of the cost pressures through thinner margins, helping temper the impact on retail shelves.

Despite these pricing hurdles, market participants report steady overall demand. While high prices have impacted volume growth—with volumes expected to adjust by 10 to 20 per cent—overall value is projected to stay close to previous levels as households increasingly view nuts as daily health items. Corporate demand and general trade remain positive, with quick commerce channels also showing strong performance for dry fruits. Additionally, consumption of cashews may rise by around 10 per cent, and new almond crop arrivals are anticipated to bring rates down by 5 to 10 per cent following Diwali.

"Shifting consumer and corporate gifting strategies in response to commodity price inflation highlights the adaptability required in retail and distribution supply chains. When input costs for specific items like almonds and pistachios surge due to global supply constraints and higher logistics expenses, businesses must pivot toward alternative product mixes to protect consumer demand. Understanding these cost dynamics is crucial for retail businesses navigating seasonal inventory planning." — Dr. Shishir Gupta, Founder & CEO, StartupLanes