Surge in Demand for Costly Dried Fruits and Nuts: A Growing Concern for Consumers
Introduction
Karachi, the bustling metropolis of Pakistan, is grappling with rising inflation, especially in the food sector. Consumers are feeling the pinch of exorbitantly high prices for dried fruits and nuts, which have become a staple in many households despite their growing costs. Among these items, pine nuts (chilgoza) have seen a dramatic increase in price, with high-quality varieties now costing between Rs 12,000-14,000 per kilogram. The surge in prices isn’t limited to pine nuts; other dried fruits and nuts, such as peanuts, almonds, cashew nuts, and pistachios, have also become increasingly expensive, putting a strain on the wallets of many Pakistani families.
A Closer Look at the Surge in Prices
Pine Nuts (Chilgoza) Lead the Price Surge
Pine nuts, which are considered a premium dried fruit, have experienced an astounding price increase over the past few years. Dealers in Karachi’s Saddar area noted that high-quality pine nuts, which were once available for Rs 5,200 per kg in 2022, have now skyrocketed to Rs 12,000-14,000 per kilogram. Just one year ago, these same pine nuts were selling for Rs 15,000-16,000 per kg. In comparison, the prices in 2021 were much more affordable, ranging between Rs 8,000-9,000 per kilogram.
This sharp rise in prices has made pine nuts unaffordable for many people across different income groups. For instance, some customers are now purchasing only small quantities, struggling to afford even the smallest pack of pine nuts. Retailers report that while the demand remains strong, many people have resorted to buying smaller portions of pine nuts at higher prices.
Peanuts: Another Shock to Consumers
Peanuts, especially the Parachinar variety, have also seen a steep price hike, making them unaffordable for many families. Retailers are currently selling Parachinar peanuts for Rs 1,200 per kilogram, a significant increase from Rs 1,000 per kilogram last year and Rs 720 in 2021. Despite the disruptions caused by road blockages and tensions in Parachinar, peanut imports have continued to flow into Karachi, with traders having secured large stocks before the escalation of violence.
The price increase has caused many consumers to cut back on their purchases, with some opting for only small amounts, such as 125 grams for Rs 150. In contrast, low- and middle-income families are now purchasing only 250 grams of peanuts, which is a far cry from the larger quantities they may have bought in the past. This trend of shrinking portion sizes reflects the strain that high food inflation is placing on everyday consumers.
Other Dried Fruits and Nuts Seeing Price Increases
Almonds (Baadam) and Cashew Nuts (Kajoo)
American almonds, which were priced at Rs 2,000 per kilogram in 2021, have seen a price increase of around Rs 800-1,000 per kilogram. Currently, almonds are being sold for Rs 2,800-3,000 per kilogram. Similarly, Indian cashew nuts, which were available for Rs 2,200 per kilogram in 2021, now sell for Rs 5,200 per kilogram, a significant price jump from last year’s rate of Rs 4,800.
While almonds and cashew nuts have seen steady price increases, traders attribute the rise in cashew nut prices to various supply chain factors, including higher demand and logistical challenges. The cost of other nuts like walnuts has remained relatively stable, with prices ranging from Rs 2,400-3,000 per kilogram for shelled walnuts and Rs 1,000-1,200 per kilogram for unshelled walnuts.
Pistachios and Walnuts: Price Stability Amidst Inflation
Iranian pistachios, which are a favorite among Pakistani consumers, are currently selling for Rs 2,800-3,000 per kilogram. While this price is consistent with last year’s rates, the demand for pistachios remains strong, especially during festive seasons. Similarly, the price of walnuts has remained relatively stable, with both shelled and unshelled varieties seeing minimal price fluctuations from the previous year.
Although prices for some nuts have remained steady, the cost of high-quality varieties like Iranian pistachios and walnuts continues to place them out of reach for many middle- and low-income consumers. The affordability of these items is increasingly becoming a luxury for only a select few.
Impact of High Prices on Consumer Behavior
Despite the rising prices, demand for dried fruits and nuts has continued to surge. According to retailers, there has been a noticeable 30% increase in demand for these items, even though prices have risen sharply. This increase in demand is driven by several factors, including the cultural significance of dried fruits in Pakistan, especially during Islamic festivals such as Eidul Fitr and Rabi-ul-Awal.
Dried fruits and nuts are often used in the preparation of popular dishes such as halwa and sweetmeats, which see a spike in demand during festive seasons. As a result, despite the high prices, consumers are continuing to purchase dried fruits and nuts, albeit in smaller quantities, to maintain their traditional food practices.
Imports of Dried Fruits and Nuts: A Significant Rise
The increase in imports of dried fruits and nuts is another contributing factor to the rising prices. According to data from the Pakistan Bureau of Statistics, dried fruit and nut imports have surged dramatically, with a 122% increase in value and an 83% increase in quantity during the first five months of FY25. The total import value of dried fruits and nuts has reached $66.2 million, up from $30 million during the same period last year. The rise in imports indicates a growing demand for these products in Pakistan, despite the high prices.
Retailers also attribute this surge in imports to the stability of the rupee-dollar exchange rate in 2024, which has helped keep the prices of imported food items relatively under control. However, the ongoing inflationary pressures and the devaluation of the Pakistani rupee against the dollar could put additional strain on prices in the coming months.
FAQs on Rising Prices of Dried Fruits and Nuts in Pakistan
1. Why are pine nuts so expensive in Pakistan?
Pine nuts, especially high-quality varieties, have experienced a dramatic price increase due to supply chain disruptions, increased demand, and inflationary pressures. Prices have soared from Rs 5,200 per kilogram in 2022 to Rs 12,000-14,000 per kilogram in 2024.
2. How much have peanuts increased in price?
The price of Parachinar peanuts has risen from Rs 720 per kilogram in 2021 to Rs 1,200 per kilogram in 2024. The surge in prices has made peanuts unaffordable for many consumers, leading to smaller purchases.
3. What other dried fruits and nuts have seen price increases?
In addition to pine nuts and peanuts, almonds, cashew nuts, and walnuts have also seen significant price hikes. Almonds are now priced at Rs 2,800-3,000 per kilogram, while cashew nuts cost Rs 5,200 per kilogram. Walnuts have remained relatively stable, but their prices are still higher compared to previous years.
4. Why is there a demand surge despite high prices?
The cultural significance of dried fruits and nuts during festivals like Eidul Fitr and Rabi-ul-Awal has contributed to the ongoing demand. Despite rising prices, consumers continue to purchase these items for use in traditional dishes and celebrations.
5. How has the import of dried fruits and nuts impacted prices?
The increase in imports of dried fruits and nuts has contributed to the rise in prices. Imports of these products surged by 122% in value and 83% in quantity during the first five months of FY25, reflecting higher demand and limited domestic production.
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