The Indian avocado market, which has witnessed steady growth in the past four years, is currently facing a major challenge due to a surge in imports, says Abdul Kadir Memon, Head of Business Development and Procurement at Abacate International: "In the first two weeks of March 2025 alone, nearly 1,156 tons of avocados have been imported; almost three to four times the quantity that was imported in the same period last year. This sharp increase in supply has led to a price crash, causing concerns among major importers and distributors."
The Indian avocado market has been growing consistently since 2021, and Memon states that this trend will continue into 2025. "In January and February of this year, total imports reached 1,854 tons, a 72% increase from the 1,078 tons imported during the same period in 2024. Our company alone handled nearly 20% of the total imports in January and February. In the past four years, we have seen imports increasing annually. However, the pace at which avocados have entered the market this month is concerning."
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Recently, there's been a strong increase in avocado arrivals: "Last year, total avocado imports for the entire month of March stood at 680 tons. In comparison, 1,156 tons have already entered India in just the first two weeks of March 2025. This level of import volume in such a short time is unusual," says Shahid Patka, Head of Sales and Operations. "Even considering the market's previous growth trends, the total expected imports for March should have been around 1,200 tons for the entire month. Instead, we've already surpassed that within two weeks, and more shipments are on the way. This is nearly three times the actual consumption capacity of the market."
Memon thinks the cause of this oversupply lies with inexperience from certain newer produce traders in India. "According to industry experts, this oversupply has been driven by new entrants who may not fully understand India's avocado consumption trends. Many first-time importers, some not even from the fruit industry, have started bringing in large volumes without assessing market demand. Importing avocados requires a deep understanding of logistics, distribution, and consumption patterns. Not all importers take a calculated approach to supply, which has contributed to the current oversupply issue."
With nearly 50 containers of avocados arriving in India within two weeks, prices have plummeted. Patka states: "Currently, a box of avocados is selling for as low as $4–$5, a dramatic drop from usual levels. Even at these prices, movement remains slow, putting pressure on traders and importers. The real challenge is still ahead. "A similar quantity is set to arrive in the remaining weeks of March, which means the oversupply situation will only worsen. Many traders and importers are likely to suffer heavy losses, and some may even have to discard unsold stock."
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Memon emphasizes that the avocados from Tanzania have become more attractive thanks to the zero import duty and transit time. "While Kenya is geographically close, it attracts a 33% duty, making Tanzanian avocados more cost-effective. Other exporting countries such as Peru, Chile, Australia, and South Africa have access to the Indian market, but longer transit times limit their competitiveness."
According to Memon, the coming weeks will be critical for India's avocado industry: "With imports continuing at an unsustainable pace, prices are expected to remain low throughout March. Industry leaders emphasize the need for better market education and planning to prevent similar situations in the future. Maintaining a balance between demand and supply will be key to the future stability of the Indian avocado market," he concludes.
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