Iran-U.S. tensions are hitting India's green Cavendish banana exports hard, says Mariam Ali of Preciouss Import & Export. "10 of our containers are stuck there with zero remittance value. Exporters are swapping two banana containers for one apple container just to get paid somehow."
According to Mariam, this year's bumper harvest from Andhra Pradesh and Maharashtra, the only two APEDA-approved states for top-quality Cavendish, landed at the worst possible time. "Iran was our main consumer and gateway to Afghanistan and CIS countries, but currency chaos from the tensions dried up cash payments. Ports are still operational, but exporters have to go through barter deals," Mariam explains.
© Preciouss Import & Export
Dubai is holding demand, but at prices down from better times, Mariam highlights. "Chilling bananas handle the short 4-day trip well to Dubai. But Saudi Arabia, Qatar, and Kuwait need non-chilling grades with 30-45 day shelf life and strict COC certificates. Currently, we are observing too much fluctuation in pricing for both chilling and non-chilling grades."
With Iran and Iraq routes slowing, India's domestic markets feel the pressure from unsold harvest volumes. "Farmers grew huge crops expecting those export outlets. Iran is not just a market; it feeds Afghanistan and beyond. Meanwhile, Saudi Arabia is sourcing directly now to cut its UAE reliance. As Ramzan approaches, early storage bookings have begun there, though Dubai prices stay softer than hoped against growing competition from Ecuador, Vietnam, and the Philippines.
Preciouss imports Vietnam and Ecuador bananas for Dubai too. "Vietnam brings stable pricing, while Ecuador and the Philippines add reliable volumes. Even if Indian bananas beat rivals in taste, business runs on margins, not flavor alone. While the UAE handles around 70% of Gulf volumes, it has multiple sourcing options, compelling Indian exporters to make competitive offers. Looking ahead, we are hopeful of Ramadan demand lifting local prices to an extent," Ali concludes.
For more information:
Mariam Ali
Preciouss Import & Export
Tel: +91 93 26 391 995
Email: [email protected]
www.precioussimportsexports.com
