<p>The dry fruit trade is hopeful that the upcoming Diwali season will bring in good tidings, despite the ongoing demand slump. The rupee slide against the dollar in recent months had somewhat impacted trade, with dry fruit imports turning costlier. This had a spiral effect on prices of dry fruits sold in local markets.</p> <p>India imports a significant chunk of dry fruits, such as almonds and cashews, to meet the rising domestic demand. The value of the dry fruit imports is estimated at about $1 billion. Besides lower demand, the local trade has had to cope up with the squeeze in profit margins due to currency movements.</p> <p>“Demand has declined by about 40 per cent this year” said a dry fruit trader, who has been in business for past 50 years at Khari Baoli, one of the big wholesale markets in the country. Buying from both wholesale and retail customers has taken a hit and chances of a pick-up are low in the run-up to Diwali, he said.</p> <p>The sluggish domestic demand for dryfruits has resulted in lower imports of products such as almonds. On a year-to-date basis (till September 30), export deliveries of almonds from California have declined by 22 per cent, according to the latest data from the Almond Board of California. About 80 per cent of global almond output comes from California. Another trader said corporate buying was lower this year, as many of them were shifting to purchase of crockery for gifting this festive season.</p> <p>“Inflation has hit the demand, as prices of almost all products have gone up in recent months. Besides, the volatility in rupee movement against the dollar has contributed to rising prices,” the trader said. Another dealer, who mainly caters to retail customers, said the offtake was lower by about 50 per cent this year, hoping that buying sentiments may look up post-Dussehra. “If things were normal, I wouldn’t have had the time to speak to you,” the trader said when Business Line quizzed him on the buying trends this festive season.</p> <p>Prices of almonds and cashews have increased by about ` 100-150 a kg over the last 3-4 months, aided by the decline in the rupee value. The rupee, which saw a significant decline against dollar over the last couple of months, has subsequently rebounded. But, importers, who had contracted shipments when the rupee had touched a record low, are trying to adjust, said Sumit Saran, Director at the SCS Group, an agribusiness-consulting firm.</p> <p>“The demand has picked up with the stabilising rupee,” he added.</p> <p> </p>