Dry fruits sales may fall 50% on high import cost, low demand

The sales of imported dry fruits may fall by 50 per cent in 2005-06 owing to the low demand and high import cost. Almond sales, that constitutes 50 per cent of the total dry fruits import, is also witnessing a slowdown due to high price.

The prices of almond are expected to further shoot up to Rs 510 per kg owing to high import cost.

"The domestic market has not yet picked up to the expectations. Moreover, we will not be able to sell almond at this high price," said the traders.

"The domestic demand for dry fruits during festive and winter season remains high. Although Navratri and Ramzan are considered to be the peak time for dry fruits, the demand has not picked up yet. Consumers are hesitant to opt for these fruits due to heat. We expect the demand to pick up as climate starts cooling," said Suniel Chabria, president, Mumbai Dryfruits and Dates Merchants Association.

India is importing 98 per cent of almond from US. In August 2004-July 2005, India imported 3,200 containers of Almond from US, but the dry fruit market slowed down subsequently. The import for this financial year would not cross 2,000 containers due to poor offtake, traders said.

Last year the price of Almond was Rs 380-400 per kg and 500-600 containers of Almond came to India during festive months against 200 containers in the same period this year.

Cashew and Kismis are mainly produced in India. Apricots and Figs are imported from Afghanistan and Europe. Apricot and Figs season is delayed by 15 days, so the import is expected to start in the later half of October, they said.

The only item that has danced to the tune of Dhandiya in Navarathri is Khajur, which is sold Rs 12 to 13 per kg. "Low quality Khajur is picking up slowly due to Ramzan demand. However, the demand is not that robust compared with last year," added Chabria.