New Delhi [India], November 5 (ANI): India's nuts and dry fruits industry, which recorded annual growth of 10-15 per cent over the past five years, may witness a sharp slowdown to just 1-2 per cent amid rising prices and weakening consumer demand, Gunjan Vijay Jain, President of the Nuts and Dry Fruits Council (India) [NDFC(I)], said.

'Because of the price increase, the growth rate of 10-15% that we were witnessing may now be arrested. The industry was growing rapidly year after year, but consumption is likely to slow down, and the growth rate may remain around 1-2%,' Jain told ANI in an exclusive interview.

He was responding to a question about the impact of higher prices on demand for nuts and dry fruits during the festive season.

Jain said the industry had witnessed significant expansion, particularly after the COVID-19 pandemic, as consumers increasingly incorporated nuts and dry fruits into their diets due to their nutritional benefits.

However, rising prices have started affecting demand, while traders are also facing difficulties in maintaining inventories due to limited working capital.

'Demand has definitely decreased. Earlier, we were seeing demand increasing every month. The capacity of traders to maintain stocks has also been affected. Someone who could earlier store 10,000 kg may now be able to store only 7,000 kg because everyone has limited resources and capital,' he said.

On festive demand, Jain said dry fruits continued to offer an affordable gifting option despite higher prices. Gift boxes priced between Rs 500 and Rs 1,000 remain accessible to consumers, although their prices have increased by around 10-20 per cent compared with last year.

Highlighting India's dependence on imports, Jain said domestic production remained insufficient to meet the country's growing consumption requirements.

'India produces around 30,000 tonnes of walnuts, whereas our consumption is approximately 90,000 tonnes. In almonds, India consumes around 2.5-3 lakh tonnes, while cashew consumption is around 4 lakh tonnes,' he said.

He added that India produces approximately 2 lakh tonnes of cashews and imports another 2 lakh tonnes, largely from Africa, for domestic processing.

Jain said the industry had urged the government to reduce customs duties and import tariffs to make nuts and dry fruits more affordable for Indian consumers. According to him, import duties on certain products are as high as 100 per cent, while duties on others reach 30 per cent.

'Our industry is probably one of the few food industries that brings raw products into the country and processes them in India. We import whole almonds and walnuts and process them domestically, providing employment opportunities to lakhs of people,' he said.

Describing nuts and dry fruits as an important source of nutrition, particularly for India's vegetarian population, Jain said they provide plant-based protein, fibre, vitamins, minerals and omega-3 fatty acids.

He also highlighted the industry's efforts under its 'Grow in India' campaign to increase domestic production and reduce dependence on imports.

Referring to the earlier reduction in Goods and Services Tax (GST), Jain said the government's decision to lower the tax rate from 12 per cent to 5 per cent had immediately benefited consumers and supported consumption growth.

On prices, he said pistachios had witnessed the sharpest increase this year, with retail prices rising from around Rs 1,100 per kg last year to nearly Rs 2,000 per kg.

He attributed the surge to a significant decline in US production, which, according to him, had fallen from around 1.6 billion pounds to 600 million pounds.

Almond prices have also increased by approximately 20-25 per cent, with retail prices rising from around Rs 800 per kg last year to Rs 1,000-1,100 per kg.

Emphasising the nutritional value of dry fruits despite higher prices, Jain urged consumers to consider them an investment in health rather than merely an expensive food item.

'Instead of giving an ordinary gift this Diwali, give the gift of health,' Jain added. (ANI)