SRINAGAR, Oct. 4 -- Bahadur Khan is on cloud 9. For the first time in the last few years, Kashmir walnut kernels are selling like hot cakes.

This is even though imported walnuts are giving tough competition to their Kashmiri cousins. Yet, the Kashmiri kernels have won round one. The rising demand and good prices were icing on the cake.

"A kilo of walnut kernel is fetching us Rs 300 to 1200. It is Rs 200 to 300 more than last year. Last year, prices were down. This year, there is a huge demand for Kashmiri walnuts. We have dispatched 400 truckloads of walnuts since August this year," said Khan, who is the president of the Dry Fruit Association, Jammu and Kashmir.

What has brought cheers to farmers is the increasing orders from traders a...