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“Infra improvements & increased automation in processing key”
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Monday, 02 December, 2024, 08 : 00 AM [IST]
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 Nuts and Dry Fruit Council, India (NDFC) is a representative association and industry voice for the nuts, dry fruits, seeds, raisins, berries and dates industry in the country. It aims to be the driving force that uplifts and empowers every facet of this vibrant sector. The Indian dry fruit market makes this sector interesting with great prospects for investment and development. Raju Bhatia, honorary president, NDFC, in an email interaction with Harcha Bhaskar talks about the market drivers and industry challenges like import duties, infrastructure and market limitations. Excerpts:
How much is the contribution of nuts and dry fruits to the nation's economy?
The nuts and dry fruits industry in India is a ?50,000 crore sector, growing at an annual rate of 15%. With increasing consumer awareness around health and wellness, this industry is steadily expanding and becoming a significant part of India’s food and agricultural economy.
How much does demand for dry fruits spike during the festive season?
Demand for dry fruits surges by around 20% during the festive season, driven by traditional gifting practices and heightened consumption of sweets and snacks incorporating nuts.
Which state in India is the highest producer of dry fruits?
Kerala is India’s leading state in dry fruit production, especially, cashew nuts.
What challenges do you face in production, distribution, and import/export in the dry fruit industry?
High Tariffs: Import duties are particularly high for items like walnuts (100%), limiting sourcing options.
Market Limitations: Imports for certain nuts, such as walnuts, are restricted to a few countries like USA, Chile, Australia, and Ukraine, although local production meets only about 30% of demand.
Bureaucratic Delays: Approval delays in concessional duty applications (TRQs) for Australian almonds and processing times for FSSAI certification impact timelines.
Non-Tariff Barriers: Some products require fumigation with methyl bromide, a practice required for imports from countries like Australia.
Supply Chain and Automation Needs: Infrastructure improvements in logistics and increased automation in processing are needed to streamline operations and reduce losses.
What is your outlook on the future of the dry fruit industry in India?
The industry is projected for approximately 10 per cent growth, driven by heightened consumer knowledge of the health advantages linked to nuts such as almonds, walnuts, and prunes. The increasing inclination towards wellness, plant-based nutrition, and high-protein snacks has established dry fruits as a fundamental choice for health-conscious Indians, hence amplifying demand.
What trends have you noticed in the nuts and dry fruits sector?
The nuts and dried fruits market in India is witnessing substantial expansion, propelled by an increasing health awareness among consumers. These items are widely acknowledged as nutrient-dense, healthful snacks, resulting in elevated consumption rates across all demographics, especially among health-conscious millennials and Gen Z consumers. This tendency is exacerbated by increasing disposable incomes and evolving nutritional tastes, as consumers want accessible and healthful snack alternatives.
What practices are followed during the processing of nuts and dry fruits to avoid losses and maintain nutritional value?
The industry implements numerous critical procedures to safeguard the nutritional value and natural qualities of nuts and dried fruits during the processing process. Initially, nuts are roasted without the addition of oil, which guarantees the preservation of their natural flavours and essential nutrients. Secondly, the use of artificial additives is avoided by utilising only natural ingredients, such as rose petals, oleo resins, and genuine seasonings, for flavouring.
Anti-humidity sachets are incorporated into the packaging to ensure that moisture levels remain below 5%, thereby preserving the freshness of the product. Furthermore, prior to processing, almonds undergo fumigation to eliminate any potential contaminants, thereby guaranteeing food safety.
A combination of manual and automated sifting techniques is implemented to enhance efficiency and quality control. Initially, nuts are manually categorised to eliminate any damaged or rejected items. Nevertheless, the industry is progressively incorporating sophisticated sorting technologies, such as Buhler laser sorters. These automated systems are capable of precisely identifying and eliminating defects, thereby minimising losses and guaranteeing consistent quality.
The dry fruit industry endeavours to minimise waste and maintain the natural sweetness of these wholesome foods, all while providing consumers with high-quality, nutritious products. This is achieved through the implementation of these practices.
What are the key drivers for growth in the dry fruit industry in India?
Driven by various substantial factors, the Indian dried fruit market is showing notable expansion. First of all, demand for nuts as both ingredients and stand-alone snacks is driven by the expanding food sector, expected to increase at a CAGR of 6%. Second, thanks to technological developments, the sector is moving from total import dependency towards a more balanced model with more local processing.
Moreover, the growth of India's food processing sector—aiming at $535 billion by 2025—directly helps the dry fruit market. Many processed food products include nuts, which help the industry to expand generally. Furthermore appealing to health-conscious consumers, the $66.29 billion vibrant snack sector uses nuts as a common component in many of its choices.
Their consumption has been increased even more by growing knowledge of the health advantages connected with nuts, such as almonds and walnuts. Driving demand are they increasingly employed in traditional and modern cuisine, morning foods, and as vegan substitutes. Furthermore, the cultural value of nuts during holidays and important events guarantees a constant market all year long.
Finally, these aspects help convey the steady expansion of the Indian dry fruit market, which makes this sector interesting with great prospects for investment and development.
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