Budget 2026-27: Sitharaman’s push for high-value nut crops sparks hope for J&K walnut trade

The announcement by Union Finance Minister Nirmala Sitharaman in her budget speech on Sunday to support the high-value nut crops, including walnut, has brought a fresh wave of optimism for nearly seven lakh people whose livelihoods depend on the struggling walnut trade in Jammu and Kashmir. Shafi said the high-density crops, as envisaged in the budget announcement, will help the local growers compete with California and Chile walnuts.

The announcement by Union Finance Minister Nirmala Sitharaman in her budget speech on Sunday to support the high-value nut crops, including walnut, has brought a fresh wave of optimism for nearly seven lakh people whose livelihoods depend on the struggling walnut trade in Jammu and Kashmir. Following the announcement, the air in the valley orchards feels a little lighter and a possible answer to the struggle which was not limited to the harvest but also about their survival. The walnut trade of Jammu and Kashmir contributes over 90 per cent of the crop output, but those associated with the trade had been appealing to authorities as it had become increasingly burdensome to sustain. For farmers like Mohammad Shafi, president of the Walnut Growers Association, the ''old ways'' were becoming a dead end. Traditional Kashmiri walnut trees are massive, making the harvest a dangerous climb and the yield unpredictable. ''The current trees pose real risks to our farmers,'' Shafi explained. ''But it's not just the height; it's the heart of the nut. Traditional varieties have shells so hard they often crush the kernel inside during extraction.'' Meanwhile, sleeker, soft-shelled walnuts from California and Chile have been ''cracking'' the Indian market, leaving local growers in the shadows. The Finance Minister's pledge to support high-density cultivation is more than just a policy shift; for the 86,000 hectares of walnut groves in Jammu and Kashmir, it is a modernisation lifeline. ''This is a very good development. It will help our economy and finally let us compete on a global stage,'' says Shafi. Jammu and Kashmir is the backbone of India's walnut industry, producing over 90 per cent of the country's output. Yet, over the last decade, the sector has been crumbling. Poor infrastructure and a lack of modern packaging saw processing units shut their doors, leaving families who have farmed this land for centuries in a deep crisis. Shafi said the high-density crops, as envisaged in the budget announcement, will help the local growers compete with California and Chile walnuts. ''The current walnut trees have low yield and also pose risks to the farmers. The high-density plants have better yield and uniform size, which fetches a good price,'' he said. For the farmers who have long been ''fighting for survival,'' the hard shell of the past decade is finally starting to crack, revealing a much brighter future inside. As per the data of the Agriculture and Processed Food Products Export Development Authority (APEDA) under the union commerce ministry, Jammu and Kashmir occupies the largest share in the total area and production of walnut in over 86,000 hectares. Besides, Jammu and Kashmir, states like Uttarakhand, Himachal Pradesh and Arunachal Pradesh also produce the crop and together amount to 3 to 6 per cent of 3 lakh metric tonnes of walnuts in 2024. Over 2134 metric tonnes of walnut worth 7.8 million dollars was exported to countries like the UAE, Turkey, Iraq, Singapore, Algeria, Qatar, Bhutan, Kuwait, Seychelles and Nigeria.

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