China's Legacy and the Rise of USA and Iran in Walnut Exports

China has long held a dominant position in the global nut market, particularly in the export of high-quality walnuts. However, the United States (USA) has surged forward remarkably, positioning itself as a significant player after China. The USA, now a major walnut exporter worldwide, has competed fiercely in the global nut markets, marking a notable shift in the walnut trade globally. Following closely behind, Iran has emerged as the third-leading country in walnut production and export. Therefore, it contributes significantly to international walnut recognition.

Indian Walnut Competes With Global Players

As per the market veterans, the import of walnuts into the Indian nut market has reached an equilibrium from various walnut-exporting nations such as the USA, Chile, and Iran. Walnut imports into India experienced a notable development during the G-20 tour on September 23, 2023. During this visit, discussions between India and the USA led to an agreement to reduce import duties on specific products. And this included walnuts as well. As a result, the import duty on walnuts was reduced by 20 percent, facilitating increased imports into India.

Shifting Import Patterns and the Rise of Chilean Walnuts in India

Import patterns reveal an interesting trend. Walnut imports from the USA to India commenced in 2013-14, reaching 14,352 tonnes. However, in the financial year 2021-22, this figure decreased to 3,558 tonnes. Notably, in the subsequent financial year 2022-23, imports from the USA experienced a significant decline of 75 percent, while imports from Chile saw a substantial increase of 27.9 percent, reaching 75.3 percent. The import of walnuts from the USA to India increased from 1,496 tonnes to 3,538 tonnes.

According to sources, Chilean walnuts are gaining immense popularity in Indian nut markets due to their cost-effectiveness compared to Indian walnuts. Walnut varieties such as Kagji and Bujili, famous in India and particularly in the Kashmir region, face competition from Chilean walnuts. The Indian walnut season begins in October, overlapping with the arrival and production of Chilean walnuts. The synchronization between supply and demand ensures a consistent and ample supply of walnuts in the Indian markets. Therefore, this contributes to the steady import of walnuts from various global players at competitive rates.