From consumption growth to domestic value creation: India's nuts and dry fruits sector enters a new phase

India's nuts and dry fruits sector is moving beyond its traditional dependence on festive demand and imports. Rising health awareness, year-round consumption, organised retail, food processing and greater interest in premium nutrition are reshaping the category into a broader food and agriculture opportunity. Col Nitin Sehgal, VSM (Veteran), CEO, Nuts and Dry Fruits Council (India) sheds light on industry trends from consumption growth to domestic value creation: India's nuts and dry fruits sector enters a new phase.

The domestic retail market is estimated at around ₹65,000 crore, supported by a wide network of growers, importers, exporters, traders and retailers. As the market expands, the focus is increasingly shifting towards building a more organised value chain, improving quality standards and strengthening India's domestic production base.

India's annual demand for six major nuts and dry fruits is approximately around 15 lakh tonnes, while domestic production stands at nearly 3 lakh tonnes. Local cultivation, therefore, meets only around 1/5th of the country's requirement.

This gap presents both a challenge and an opportunity. Imports will continue to play an important role in meeting consumer demand, but expanding domestic cultivation can improve supply security, reduce import dependence and create new income opportunities for farmers and support value addition across rural and urban markets.

The government has recently told the Parliament that India's trade gap is, in many ways, a by-product of its current stage of development, shaped by rising consumer demands and aspirations. Viewed in this light, the push for greater domestic production of nuts and dry fruits fits within a wider national effort to build self-reliant supply chains across sectors, rather than standing apart as an isolated industry concern.

As India's nuts and dry fruits market expands, the opportunity lies in building a stronger domestic ecosystem that complements global trade. With the right support for cultivation, quality planting material, farmer knowledge, processing and market linkages, India can create greater value across the chain while improving resilience and rural incomes.

India's diverse agro-climatic conditions offer considerable potential for high-value cultivation across hill states, coastal regions and other suitable belts. However, scaling production will require more than simply increasing acreage. Farmers need access to quality planting material, region-specific crop guidance, technical knowledge, post-harvest infrastructure and dependable market linkages. The benefits of higher domestic production could extend across the entire value chain. Increased output can support grading, processing, packaging, warehousing, cold-chain facilities and logistics while creating opportunities for small businesses and local employment.

Realising these potential calls for coordinated intervention from government bodies such as the NITI Aayog, Ministry of Agriculture and Farmers Welfare, Ministry of Finance, Ministry of Commerce and industry along with State Level Ministries and Government Departments, supported by Industry bodies like Nuts and Dry Fruits Council (India).

A stronger farm-to-market system can also improve price visibility for growers and provide processors with more consistent supplies. Better coordination between producers and buyers would help reduce wastage, improve quality and encourage investment in value-added products.

Quality and consumer confidence will remain central to the sector's next phase. As nuts and dry fruits become part of regular household consumption, greater attention will be required on product standards, traceability, storage conditions, labelling and food safety.

The gradual formalisation of trade can support this transition by improving transparency and creating a more level playing field for businesses. Industry bodies, government agencies and other stakeholders will need to work together on common standards, knowledge sharing, consumer awareness and policy support.

Meanwhile, domestic cultivation should be viewed as complementary rather than competing priorities, as local production can create a more resilient foundation for long-term growth.

This spirit of coordination echoes the government's own recent push at the highest level. Prime Minister Narendra Modi's second high-level meeting with Secretaries reviewed the action agenda for Finance and Economy, Commerce and Industry and Technology, calling for stronger team building across ministries and departments and breaking silos that slow integrated outcomes. For a sector like nuts and dry fruits, where growth depends on aligning agriculture, processing, trade and policy, this emphasis on coordinated governance offers a timely reference point.

The next phase of the industry will depend on how effectively it connects agriculture with processing, retail and exports. It will also require closer coordination among farmers, businesses, policymakers, research institutions and trade organisations.

India has already emerged as a major consumption market for nuts and dry fruits. The larger opportunity now lies in building a stronger domestic ecosystem that will support farmers, improve processing capabilities, create jobs and position the country as a competitive producer and exporter.

With sustained investment in cultivation, quality, infrastructure and market access, the sector can evolve from an import-led category into a wider source of agricultural and economic value.

For more information, please visit: https://ndfci.org/