A Surge in Almond Prices as Production Dips

This season, the almond kernel market is shaping up to be highly profitable in India. Thanks to a significant drop in production in Australia and California. With fewer almonds on the market, the booking price of almond kernels has shot up. Adding to the price boost, traders have managed to clear out 90% of the old stock, which had been sitting in storage for years, leaving them optimistic about solid profits at current rates.

According to the latest survey, California’s almond production has dropped by 17 to 18 percent this season. While Australia’s new almond crop, which usually hits the market in August, is also seeing smaller yields. This dip in production is driving booking prices higher. For the past three years, older stocks of the Independent and Gurbandi varieties have kept prices stable. But with adverse weather in Jammu affecting local almond quality and output, the market supply has tightened even further.

Traders Hold Firm as Prices Continue to Climb

With fewer almonds available in California, traders have hiked their prices. And importers are not budging on selling at lower rates, pushing prices even higher. In just the past month and a half, almond kernel prices have risen by USD 1,20 per kg, and traders report that, despite small fluctuations, prices continue to climb. This is partly due to limited container availability, which adds pressure to the market. Today alone, traders noted an additional USD 0,06 to 0,08 per kg increase.

Short Supply Fuels Price Hikes Even Further

Unfavorable weather has meant fewer local traders and sieve operators are coming to the mandis. Last month, only 868 containers of almond kernels arrived in the market, far fewer than the 1,000 containers typically needed to meet consumption. This shortfall has driven up demand from both local and outstation traders, leading to further price increases.

Traders had expected more almond kernels from Australia to arrive in August. But the limited supply has contributed to the price surge. The projected almond production, which was USD 2,914 million, has now dropped to USD 2,666 million, adding more fuel to the fire. Most of the old almond kernel stock has already been sold, with just 10% of it remaining.

Where Are Prices Headed Before Diwali?

Right now, almond kernels are priced at USD 8,22 per kg, and traders believe that prices could jump by another USD 1,20 per kg before Diwali. With the supply tight and demand steady, the market seems poised for further price hikes, making this a potentially profitable time for traders.

Conclusion: Almond Market Looking Profitable as Prices Soar

The almond kernel market is presenting a promising opportunity for traders, thanks to reduced production in major regions like Australia and California. With limited supply and old stock mostly cleared out, prices are on the rise. Traders are expecting even higher profits in the months leading up to Diwali, as demand continues to outpace supply.

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