MODESTO (US): Kashmiri and Californian walnuts can co-exist in the booming Indian market with American growers of the healthy dry fruit eyeing it in a big way after exports to the traditionally-strong Chinese market dropped amid a slowdown in the world's second-largest economy."We are excited about the Indian market and feel it holds great potential for our industry," Chief Executive Officer of California Walnut Commission (CWC), Dennis A Balint, said."What is most encouraging is that India has a tradition of walnut consumption," Balint, also Executive Director of California Walnut Board told PTI here."Shipments of California walnuts to India for the 2013-14 crop year, our first year with market access, was about 310,000 in-shell pounds and 42,000 pounds of kernels," CWC's Assistant Marketing Director, International, Jennifer Williams said.Last year, the 2014-15 crop year saw shipment increase quite a bit with 5.2 million pounds of inshell walnuts going to India and 84,500 pounds of kernels."We feel the India market will continue to grow as the message of California quality spreads and the health messages continue gain popularity," she said."Inshell exports of walnut to India have been significant," CWC's Senior Marketing Director, International, Michelle McNeil said. At the same time, she said exports of shelled walnut to India was still small but had long term potential.Asked about concern expressed by Indian walnut growers on the entry of American walnut in the domestic market, McNeil said: "there is scope for both as the market is huge."She said the CWC's efforts are to make available to Indian consumers good quality California walnuts round-the- year.McNeil said the CWC was confident that the Indian bakery, confectionery and ice cream industries would readily accept Californian walnuts which were produced, processed and packed in state-of-the-art facilities in California."We know that the Indian consumer wants walnuts from California," she said. "We will promote the California brand, along with our reputation for food safety and reliability." she said, adding that currently the CWC was working with doctors and nutritionists on the health benefits of consuming walnuts.The California walnut industry is made up of over 4,000 walnut growers and 93 walnut handlers/processors.In 2013, India allowed import of walnuts from the United States, provided that American shippers provide additional declarations and meets special fumigation conditions. Walnuts are imported into India without quantitative restrictions under the Open General License (OGL) programme. Imports are subject to an effective import duty of 30.9 per cent.Jammu and Kashmir Horticulture Minister A R Veeri recently told PTI that the walnut sector in the state, the main producer in India, was facing problems because of the arrival of American kernels in the market."There is less import duty on those kernels so they are available in the market abundantly and people buy them as their rates are low. Those kernels are being packaged in such a way that they look of good quality, otherwise they do not taste like Kashmiri walnuts which are the best," he said."We are hopeful of some change at the Central level. There should be an increase in the import duty of the American kernels. I have taken the matter up with the Chief Minister and he has also raised the issue with the Union Finance Minister."In India, major processing facilities for shelling and packing walnuts are located in State of Jammu and Kashmir."We are hopeful of some steps being taken to save the Kashmiri walnut," Veeri said.Meanwhile, walnut exports to China, the largest producer and consumer of walnuts in the world, has dipped slightly. Tree nut imports are expected to fall in the wake of China's economic slowdown, US Department of Agriculture said.According to CWC statistics, shipments of California walnuts to China did see a slight dip in the 2014-15 crop year, compared to the previous crop year. The Chinese crop, according to International Nut and Dried Fruit Council (INC), saw an increase and may be a contributing factor. The INC has predicted the 2015/16 Chinese crop at about 540,000 MT, an increase of less than 2 per cent.According to US Department of Agriculture, Indian walnut production is forecast at 38,000 MT (inshell basis), a 12-per cent decrease from the previous year. Walnut imports could increase given lower local production and increasing consumption.Indian walnut production is expected to reach 38,000 MT (inshell basis) in marketing year 2014-15, down 12 per cent from the previous year. Typically the walnut harvest runs from the end of August through September, with market arrivals peaking in late October.Indian walnuts are cyclical in terms of production, with yields varying from five to 20 per cent depending on the prevailing weather.The production estimate for marketing year 2013-14 has been revised up eight per cent to reflect latest estimates. Long gestation periods, poor orchard management, and uneven yields (estimated at 18-50 kg/tree/year with nut sizes varying from 24-32 mm) keep walnut production relatively stagnant, the latest USDA report said.Indian walnut consumption in marketing year 2014/15 is expected to grow eight per cent to 28,000 MT due to stable supplies and strong domestic demand. Presently, an estimated 50 to 60 per cent of Indian walnut supplies are consumed domestically, of which nearly half are consumed during the festive season.Industry sources, quoted in the USDA report estimate that upwards of 10 per cent of domestic consumption is by the bakery, confectionery, and ice cream industries.A growing awareness of the health benefits associated with eating walnuts (like reducing cholesterol) has encouraged higher consumption, particularly in the form of snacking in India, Carol Berg Sloan, CWC's Registered Dietitian and Consultant, said.Walnuts are an excellent source of anti-inflammatory omega-3 essential fatty acids, in the form of alpha-linolenic acid (ALA). Walnuts are also rich in antioxidants, including being a very good source of manganese and copper, she said.The wider usage of attractive consumer packaging (vacuum packs) is improving the shelf life and quality of walnuts, and has also encouraged year-round consumption as ready-to-eat snacks are more broadly available.Increased usage of walnut as ingredient for bakery and confectionery products is also supporting consumption growth.Meanwhile, India exported 2,665.87 MT of walnuts worth Rs 136.45 crores during the year 2014-15, according to figures from the Agricultural and Processed Food Products Export Development Authority (APEDA).Major export destinations during 2014-15 included Vietnam, UK, US, Egypt and the Netherlands.