How Production Issues Are Driving Prices Up

The production of walnuts has taken a hit this year, leading to a potential price increase. Walnut production occurs primarily in Kashmir, other hilly regions, Chile, and parts of South America. Among these, Chile produces some of the best-quality walnuts available in the market. However, reduced output combined with increased demand is driving prices up.

Adding to the issue, the old stock is in short supply, and producer markets are already experiencing high prices. In Delhi, new walnut stocks typically arrive in July, while American shipments arrive in December. The reduced availability of walnuts this year suggests that prices could rise even further.

Walnut Price Trends: What’s Happening Now?

As of now, prices have already climbed significantly. Last year, walnut kernels opened at USD 5,09/5,15 per kg. In bulk, 30/34-number kernels are priced at USD 15,50 per kg, while 34/36-number kernels cost USD 15,74 per kg. Meanwhile, American walnut kernels are selling at USD 13,92 per kg.

Kashmir’s walnut kernels, despite their decent quality, are priced much lower, ranging from USD 7,26 to 12,09 per kg. Whole walnuts are currently selling for USD 4,24 to 7,26 per kg, while their kernels range from USD 9,08 to 14,52 per kg. Analysts predict prices could rise by another USD 1,21 per kg in the coming months due to sustained demand and reduced availability.

Increasing Demand for Walnuts Explained

The demand for walnuts has grown considerably, driven by both domestic and international markets. Walnuts are valued for their ability to boost memory and alleviate joint pain. Additionally, Ayurvedic companies are using them in various products, further contributing to demand. Big malls and households are also purchasing walnuts more frequently than before, which is exacerbating the shortage.

The Future of Walnut Prices

Considering the current market trends, walnut prices are likely to stay on an upward trajectory throughout the year. The combination of lower production, limited old stock, and increased demand from diverse sectors will continue to exert pressure on prices.

Practical Advice for Walnut Buyers

If you’re planning to purchase walnuts, it may be wise to buy them sooner rather than later. Prices are expected to rise further as demand increases and supply remains tight. If you’re a trader, holding stock could yield profits in the near term. For consumers, bulk buying might help save costs as prices inch upward.





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