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Indian banana prices collapse as export disruptions hit growers

Banana growers in Maharashtra, India, are facing market pressure following export disruptions to the Middle East. Farmers in key production areas such as Jalgaon and Solapur report that containers remain in cold storage, with shipments unable to move. Volumes originally intended for export have been redirected to the domestic market, increasing supply and lowering prices.

In February, farm-gate prices ranged between Rs 18 and Rs 22 per kg. By March, prices declined to Rs 8 to Rs 10 per kg, and in April fell further to Rs 2 to Rs 3 per kg.

"The highest rate I got was Rs 22 per kg in February. But as the war started and exports were curbed, harvests across the state got diverted to the domestic market, and prices crashed," said Bhagwat Holkar, a farmer from Karmala in Solapur district, who has 4.05 hectares under banana cultivation.

Holkar reported input costs of nearly Rs 20 lakh (US$24,000) for fertilisers, drip irrigation, and other requirements. At current price levels, he expects returns of Rs 2.5 to Rs 3 lakh (US$3,000 to US$3,600), indicating a loss of more than Rs 17 lakh (US$20,400).

"I am now planning to put a rotavator over part of my field and switch to sugarcane. We cannot rely entirely on bananas anymore with the market unreliability," he said.

Another farmer in Baramati reported similar actions. "The prices are so low that I cannot even recover the cost of transport and labour. I have decided to destroy the plantation and prepare the field for sugarcane," he said.

"While in retail, consumers pay Rs 50 to Rs 60 per kg, farm-gate prices have hit rock bottom. Traders should pay us a fair price so that we can at least survive," he added.

Hanuman Dake, a banana grower from Jalgaon, noted rising production costs alongside declining income. "With the cost of cultivation – fertilisers, pesticides, labour, irrigation and other inputs – rising even as income has fallen sharply, many farmers are struggling to repay debts and keep their operations going. It has become very difficult to sustain," he said.

Banana cultivation requires year-round investment, making it less flexible than seasonal crops. Farmers report that losses must be absorbed before switching to alternative crops.

Growers are calling on authorities to provide compensation and to explore alternative export markets beyond the UAE, Iran, and Iraq.

Source: OdishaBytes

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