Australian almonds provide key ingredient in India's culture through federal government trade deal

The bustling streets of Chandni Chowk in Old Delhi are home to Asia's largest wholesale spice markets. (ABC News: Kristy O'Brien)

From the bustling metropolitan streets of Mumbai to the more rural homes of Kanpur in India, almonds are part of the country's traditional culture.

"Every mother feeds about 10 almonds to her kids every day in the morning, if she can afford it," nut importer Raju Bhatia said.

But almond consumption in the country is changing, driven by a younger, health-conscious generation and India's wealthy population.

"People are getting educated about the health benefits," Mr Bhatia said.

"The economies are rising over here … and disposable incomes are increasing.

"The middle class, which is now about 300 million, is expected to go up to 600 million the next couple of years, so that is driving the consumption up and we hope that will remain up."

Mr Bhatia said catering to the younger generation was a bountiful business opportunity for the "youngest country in the world", with India's average population sitting at 29 years old.

"More than 60 per cent of the population is below the age of 30," he said.

"They would rather eat healthy food than junk food and a very important factor for that is the young population of India."

Next generation in the driving seat

Mr Bhatia's family has been selling spices and nuts since 1887.

He was one of the first importers of Australian almonds more than 25 years ago and now he is one of the biggest.

He said there had been astronomical growth in consumption of nuts in his country, which he estimated was rising up to 20 per cent each year.

His daughter Aishwarya Bhatia has joined the family tradition, creating a snack line in 2009 with her sister, which is sold in 30 cities across the country.

"Gen Z has come in, we are health conscious, we started making conscious decisions about food and that's where nuts and dry foods play such an important, such a critical role," she said.

Ms Bhatia said it was not just the waistline or longevity that was on their radar, but gut health and increasingly recognised food intolerances.

Contagious coffee culture

Sydney-born Shannon D'Souza said the trend towards lactose or dairy-free products such as almond milk was timely as it tapped into another booming market in India — an emerging coffee culture.

Mr D'Souza is part of a huge disruption to the coffee scene going on right now in India.

The business graduate couldn't find a decent drop of coffee anywhere, so he started his own coffee shop and roastery.

"From day one we had so many people come in and say, 'I want barista-quality almond milk'," he said.

"I think the reason for that is, because a lot of people in India are very sensitive around gut health, skin care, hot temps and hot heat, it's increased awareness [plant milk] is good for gut health and skin care."

'Game-changer'

One of Australia's biggest almond growers, Select Harvest, is aiming to use processed foods to provide another avenue for almonds.

"We're starting to look at volume and how we can increase that volume in that Indian market, and that's really driven by the value-add that's happening in the market," international sales manager Ekrem Omer said.

"It's not just that retail demand and snacking demand that we're seeing, but we also see [almonds] being used in beverage, confectionery, bakery, muesli, which are developing markets in the Indian market."

Despite the cultural significance of almonds in India, it's not a crop the country grows, leaving the consumer heavily reliant on the world's largest producer in California, along with Spain and Australia.

Australia now has an advantage over its competitors, with a new trade agreement reducing the tariff on Australian almonds by 50 per cent.

Almond Board of Australia chief executive Tim Jackson said it was a game-changer.

"It has had an instant impact for almonds. We've seen the amount of almonds exported … double this year to a record level," he said.

"They now represent 20 per cent of all our exports."

Almonds are now Australia's most valuable horticultural commodity.

The almond board even anticipates that India could match China as its number one importer.

By 2025 the farm gate value of almonds is tipped to reach $1 billion.

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