India’s avocado boom exposes a huge gap between rising demand and supply.

India’s appetite for avocados has grown rapidly, but farmers are struggling to keep the fruit bowl full. Prices doubled after celebrity Shilpa Shetty boosted demand around 2011, encouraging producers to switch land towards the crop. Yet domestic production of just 8,000–9,000 tonnes falls well short of demand, with around 15,000 tonnes imported each year. For farmers facing declining coffee and pepper yields because of climate change, avocados offer an attractive diversification opportunity. However, high-quality production requires specialist knowledge, technology and carefully managed orchards—meaning the avocado revolution is anything but a simple case of planting a tree and waiting for guacamole.

Indian farmers struggle to meet the demand for avocados - BBC News

1. Explain how changes in demand and supply for avocados in India have affected their price.

2. Assess whether the supply of avocados in India is likely to be price elastic or price inelastic.

3. Discuss whether Indian farmers should switch from traditional crops to avocado production.