Soaring dry fruit prices compel consumers to curtail quantity

Kathmandu, Oct. 31: As the Tihar festival descends upon us, a significant concern has distressed consumers in Nepal: the soaring prices of dry fruits. 

The consumption of dry fruits hits the peak in Tihar festival as women offer these delicacies to their brothers during the Bhai Tika festival. However, this year, many are finding it increasingly difficult to afford these requisite items due to sharp price hikes.

Despite the price hikes, the flow of people for buying dry fruits in the major markets of the capital has increased since Sunday, said the traders. Markets like New Road, Makhan, Indra Chowk, Asan were filled with consumers to buy these fruits as people hope to get dry fruits in those markets at cheaper rates compared to other retail stores.

According to the traders, consumers mainly bought cashew nuts, almonds, pistachios, raisins, walnuts and other items during this festival. The price of dry fruits has increased by up to 50 per cent this year compared to last year, said Umesh Jaisawal, a trader at Asan Chowk. According to him, the price of cashew nuts has increased by Rs. 500 per kg to Rs. 2,100 this year. The price of cashew nuts was only Rs. 1,500 per kg until two months ago. 

Similarly, almond has become more expensive this year than last year. The price of almond increased to Rs. 1,700 from Rs. 1,200 per kg a year ago. In the meantime, the price of makhan doubled this year. A kg of makhan is being sold at Rs. 2,000. It was sold at Rs. 1,000 per kg at last year's Tihar. 

According to him, the price of other items of dry fruits, including coconut, pistachio, cinnamon, dates, and green cardamom has marginally increased this year. The coconut costs Rs. 550-Rs. 600 per kg, pistachio Rs. 2,100 to Rs. 2,200 per kg and cinnamon Rs. 300 per kg and walnuts Rs. 500 per kg. According to him, raisins and dates are available in the retail market at Rs. 500-600 and Rs. 600 per kg respectively. 

President of Nepal Retailers Association Pabitra Bajracharya said when the wholesalers increased the prices of dry fruits arbitrarily taking an opportunity of high demand, consumers were hit by the price increase during Tihar. He claimed that there was no international reason behind significant increase of prices at present.

He said that wholesalers used to double the prices when they increased slightly in international market. The price of dry fruits, especially almond, cashew nuts, walnuts and pistachio has increased in the retail market after wholesalers increased their prices, he clarified.

There was no problem in the supply of dry fruits during the festival as dry fruits have been regularly imported in the country. Nepal mostly imports dry fruits from India. However, the country imports dried fruits from other countries including China, Pakistan, Afghanistan, Iran, Indonesia, Brazil and the US. 

The dry fruits worth Rs. 1.71 billion have been imported during the first three months of the current fiscal year. Dry fruits worth Rs. 1.47 billion had been imported during the first three months of the last fiscal year.

Sales drop by 30%

According to Jaisawal, significant price hikes of major items, including almond, pistachio, cashew nuts has affected the sales even at Tihar festival. The sale of dry fruits dropped by 25-30 per cent this year than last year, he informed

The sale of dry fruits has remained low even though the flow of people has been growing in Asan, said a street vendor Bikash Shrestha at Asan. “I have started selling dry fruits with packaging since Sunday. But the sale could not be like in the past,” he said.

The reduction in the purchasing power of people has affected the sales of every item, including dry fruits even during the Tihar festival, he said.

The demand for dry fruits is at around 30-40 per cent only in Tihar out of total annual consumption, he said. However, due to low income, people are buying dry fruits only to fulfil the necessity, Jaisawal said.

Normal consumers used to buy dry fruits of at least Rs. 2,500 even though prices increased in Tihar festival, he told The Rising Nepal. According to him, rich consumes used to buy dry fruits worth Rs. 5,000 to Rs. 10,000.

However, due to the increase in prices, consumers have cut the purchase of cashews, pistachios and almonds by half.

Kabita Sharma of Thimi of Bhaktapur said that she had arrived in Asan to buy dry fruits and other goods for the festival. The price of dry fruits has increased this year compared to last year, she said, adding that price of dry fruits has usually increased during the Tihar festival due to high demand.

"I bought all items of dry fruits worth Rs. 5,000 due to high price. Dry fruits are required for the festival," she said. According to her, comparatively, the price of cashew nuts, almond and pistachio which is a must essential for Bhai Masala has become dearer this year than last year.