SRINAGAR, DEC 29: In a significant transformation within India’s walnut market, Kashmiri walnuts face formidable competition from their Californian and Chilean counterparts.
Recent data highlights a remarkable surge in the import of Californian walnuts, totalling 3,538 metric tonnes this year—a substantial increase of over 42 percent compared to the previous year’s 1,496 metric tonnes.
The surge in Californian imports follows India’s decision in September to officially lift retaliatory tariffs on specific U.S. farm products, including almonds and Californian walnuts.
Chilean walnuts are also making significant strides in the Indian market, as per statistics from the Ministry of Commerce and Industries. Chile’s walnut export share has surged from 29.7 percent in FY2018 to an imposing 75.3 percent in FY23.
This influx of imported walnuts is dealing a severe blow to the Kashmiri walnut industry, prompting concern from Haji Bahadur Khan, President of the Kashmir Walnut Growers Association.
Khan reports a staggering 50 per cent decline in walnut kernel prices this season. The price drop is evident in both high-quality and low-quality kernels, with the former now selling at Rs 1000 per kilogram compared to Rs 1200 a decade ago and the latter priced at Rs 150-250 instead of the previous Rs 300 per kilogram.
Khan emphasizes the absence of quantity caps on walnut imports from California and Chile, noting that the surge began after 2016. He states, “Californian, Chinese, and Chile walnuts have invaded the entire markets in India.” Despite claims that Kashmiri walnuts are entirely organic, Khan acknowledges the challenges in competing with the imported varieties, particularly the high-grade quality of Californian walnuts due to the use of pesticides and other sprays.
Growers share these concerns, with Bashir Ahmad, a walnut grower, pointing out reduced demand leading to struggles in securing favourable deals from dealers. He notes a significant decline in dealer participation, stating, “Earlier, dealers would come from various districts to buy our walnuts. Now, there are just a few dealers left who are still associated with this trade.” The evolving dynamics in the walnut market raise critical questions about the future of the traditional Kashmiri walnut industry, underscoring the necessity for strategic interventions to support local producers.
