Cashew nut prices remain unchanged despite increased Diwali demand

Despite the festive surge in demand during Diwali, cashew nut prices have remained stable in India, thanks to a surplus in supply. The country, which is the second-largest producer of cashews globally, has seen prices holding at ₹630-680 per kg, with a slight increase from the sub-₹600 level observed a few months ago.

The stability in prices can be attributed to a significant increase in the global production of cashews and almonds, leading to a 25% rise in supply. India, with its rising consumption, particularly during the festival season, has become a major market for nuts and dry fruits. Traditional sweets are being replaced by these healthier alternatives, a trend that has been bolstered by the emphasis on healthy snacking post the COVID-19 outbreak.

Additionally, the removal of tariffs on imported walnuts and almonds from the US and trade agreements, such as the one with Australia, have contributed to the abundant supply of nuts in the Indian market.

Rajmohan Pillai, Chairman of Beta Group, highlighted the 25% increase in supply this year, driven by higher production of cashews and almonds worldwide. Despite the increased demand, prices have not risen significantly due to the surplus, benefiting consumers and corporate buyers alike.

The domestic market's shift from export to domestic sales has further contributed to the availability of cashews within the country. Indian consumers are increasingly recognizing the health benefits of nuts and dry fruits, leading to a consistent 10-12% annual increase in consumption. Medical endorsements and social media diet plans emphasizing the nutritional value of nuts have played a pivotal role in driving this trend.

With cashew prices remaining steady and the variety of nuts available catering to different consumer segments, the Diwali season has witnessed a rise in the gifting of dry fruits among both corporates and individuals. The stable prices have not only facilitated festive celebrations but also encouraged a healthier snacking culture among the Indian populace.

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