Dry fruit prices rise at Vashi APMC, Diwali sales fall to 10-15% of normal

Many households may go without the traditional box of dry fruits in their Diwali shopping this year. Rising import and transport costs have made these festive favourites costlier. Traders at the APMC wholesale market in Navi Mumbai say festive business has fallen sharply, with sales at only 10-15 per cent of the usual Diwali level.

The price rise is most visible in almonds and pistachios. Almonds sold at about Rs 750 a kg last year and now cost Rs 950 a kg, an increase of Rs 200. Pistachios were available at about Rs 1,200 a kg last year and have now reached Rs 1,500 a kg. The increase is not uniform across all varieties, however.

Some expensive imported dry fruits have risen considerably, but traders say the claim spreading on social media that prices of all dry fruits are skyrocketing is misleading.

According to Gopal Mutha, partner at Bhagirath Mutha and Company in Mumbai, there are three reasons for the price rise. The first is the conflict in Iran. Geopolitical tension has affected international supply chains and the movement of imported goods. The second is lower production. Traders estimate that crop output has fallen by about 30 per cent, adding pressure on supply. The third is a shock in freight rates. According to Mutha, international freight charges were earlier said to be between $500 and $800 and have now reached about $8,000. Which shipment this figure is based on is yet to be confirmed.

Retailers' main worry is the impact on festive sales. Almonds, cashews, raisins, pistachios, apricots and figs are in good demand during Diwali, both for use at home and as gifts. But with premium boxes costlier, customers are either buying smaller quantities or switching to cheaper options.

Dinesh Rameshlal Dang, a trader with Kandhar Traders at the APMC market in Vashi, said: "Dry fruits that earlier arrived from Afghanistan in 20 to 25 days are now taking about three months. The conflict in Iran, high freight charges and increased import costs have all affected the supply chain. With prices rising, customers are hesitating to buy as much dry fruit as they normally do at Diwali. This festive season, sales are only 10-15 per cent of normal business."

The shift in preference is also visible in gifting. Buyers who earlier chose boxes of premium dry fruits are now moving to blueberries, strawberries, blackberries, homemade chocolates and traditional Diwali faral.