The Indian government’s recent decision to lower the goods and services tax (GST) on nuts and dried fruits to 5% is expected to boost domestic consumption, especially for value-added products. Gunjan Jain, President of the Nuts and Dried Fruits Council (India), expressed optimism about the change during an online discussion with businessline.
Previously, cashew nuts, raisins, and walnuts were already subject to a 5% GST, while other nuts, including almonds and pistachios, were classified as value-added and taxed at 12%. The reduction to 5% for these products is anticipated to stimulate growth in the value-added sector, Jain noted.
The nuts and dried fruits sector has actively lobbied for this tax reduction, especially in light of earlier proposals that considered imposing an 18% GST. Jain highlighted the industry’s satisfaction with this decision, emphasizing the move makes nuts and dried fruits more affordable, resulting in price reductions by 7%.
This price drop is expected to broaden the consumer base, potentially increasing it by at least 10%, as lower entry prices will encourage consumers who have not previously tried these products. Jain predicts that sales will surge during the upcoming festival season and views the GST cut as a positive development, particularly amidst rising global prices.
Jain further indicated that the industry unified its efforts to convince the government about the essential nature of nuts and dried fruits, citing their health benefits and the significant involvement of small and medium enterprises in the sector. He remarked on the potential for India to emerge as a nutrition hub, given its diverse agro-climatic conditions and competitive labor costs.
The council has received government approval to import high-yielding walnut and cashew saplings. Discussions are ongoing with the Agriculture Ministry regarding policy adjustments to support nut cultivation, particularly for marginal farmers who need assistance until their trees begin yielding, which typically takes four to six years.
Jain also reported a favorable weather impact on walnut production in Kashmir, which should result in an improved crop in terms of quality. Meanwhile, cashew prices have moderated due to better supply, with stable demand in India. Jain acknowledged that while global prices are declining, they are unlikely to crash.
Published on October 7, 2025.
