Almond Market and Demand in India
The sarcasm about almonds is that despite the US produces for a majority of its production, India is, by far, its biggest importer. Perfect soil and weather conditions in California, and Indian mothers spreading the health benefits of four almonds a day for generations. What’s absolutely not funny, though, is the profit it ‘normally’ offers to importers.
Old Delhi has its own attraction. When you walk down its by-lanes, all you will see is dry fruits and spices, giving the neighborhood an aroma of its own. Also, India’s surging almond imports.
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PROFIT ESTIMATE FOR ALMOND IMPORTS
To understand the growing request for almonds in India, which has made the country its biggest importer, Demand for almonds is increasing day by day. There is no end to it.
India’s in-shell almond imports have grown at a CAGR of 17.5% over the last decade. What’s even more motivating is the fact that in the future, the growth rate will be even higher.
It is very likely, they were imported from the US. For, not only in the US by far the biggest manufacturer, but also the top exporter of almonds in the world. “Most traders in this market import almonds from California. The main reason is soil and weather conditions. You need a mild-moderate kind of weather, cool rainy winters and dry summers, escorted by rich soil for almond production. All of this is available in the central valley of California. India’s in-shell almond imports have grown at a CAGR of 17.5% in the last decade
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WORLD WIDE PRODUCTION:
After the US, Australia is a reserved second when it comes to India’s sources of almond imports. But being cheaper, the overall value being shipped to India has heaved at an average of over 84.3% before a slight dip in FY2015.
Exports of Australian almonds to India have surged in the past few years as a result of the large area of plantations planted in the mid-2000s coming into full production, thereby increasing the Australian industry’s capacity to transfer.
FOR JOBS
While India is the world’s major in-shell almond importer, it doesn’t even rank in the top 15, when it comes to imports of shelled almonds. And the reasons for this are simple. Firstly, given the cheaper labor cost in India as linked to that in both the US and Australia, it’s very logical to import in-shell almonds and then sell them in India. Secondly, probably to ensure almond-shelling connected jobs, even the government has fixed lesser import duties for in-shell almonds as compared to shelled almonds.
And one of the best examples of such differential rates indeed making jobs in India is Karawal Nagar in North East Delhi, where, on an average day, one can find thousands of workers shelling almonds. Interestingly, even exporters are not disturbed by such differential rates. This (differential rates) is very good for India because the shelling that happens here has shaped a huge cottage industry.
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CHALLENGES
Almond imports might sound like a superb business, but it has its fair share of dares. Firstly, to import almonds, one needs several documents, like health and sanitary documentation, a certificate from food health authorities and phytosanitary certificates, etc. Traders also feel that rules that make having an import licensee compulsory should be done away with. “One needs to have an import authorization to import almonds. But in the case of Californian pistachios, the government has canceled the rule that necessitated a permit. This should be done even for almonds
FSSAI ROLE:
The Food Safety and Standard Authority of India (FSSAI). With already a bad standing in the case of several imported food items, the activity hasn’t made its case any stronger when it comes to almond. “There are difficulties with FSSAI. It takes a lot of time to clear our vessels at the port. Sometimes, it takes 15-20 days, and sometimes even a month. Delaying permissions is not the only issue FSSAI is blamed for. It’s also accused of pilferage During FSSAI sampling, there is pilferage
REVIEW:
If you plan to import almond imagining related interference to be provisional, here’s another piece of bad news. Preempting a rise in prices because of the drought in California, Indian traders had imported huge quantities of the dry fruit in the recent past, which has created an over-supply situation and wiped way margins. Yes, almond imports are ‘currently’ not very moneymaking.
Simple. Just wait for the over-supply situation to take care of itself. Given the business almond imports normally offer, the wait is certainly worth it.
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