Cold snap triggers 30% drop in banana exports, hitting farmers and traders

The extreme cold weather prevailing in most parts of the country is expected to bring down banana exports by 30 per cent leading to a loss of about ₹200 crore for exporters.

India is the largest banana producer and exporter. The climate in key growing states such as Maharashtra, Uttar Pradesh, Andhra Pradesh, and Karnataka has dropped below 12 degrees Celsius, distorting the colour and causing internal damage to bananas that were ready for harvesting.

The Agricultural and Processed Food Products Export Development Authority warns that the economic repercussions of chilling injuries could result in a 15-30 per cent decline in export volumes, translating to huge loss. Competing nations such as Ecuador and the Philippines are poised to benefit from this setback.

Kaustubh Bhamare, Business Head of Pinnacal Agrotech, said some of the traders who had booked their deals with farmers at ₹24-₹28 a kg had crashed prices to ₹8-₹14 after the spotted red dots on the skin of bananas that were ready to be harvested.

The cold weather has stifled the plans of a few exporters who had received orders from Russia and Iran for the first time ever, he said, even while the demand from West Asia and Gulf countries remained strong.

Bhamare said the ragging war in Russia and Iran did not have any impact as demand for table fruit remains strong, and India is the largest exporter globally.

Grown largely at Jalna and Sholapur in Maharashtra, Robusta bananas are in much demand globally.

To beat the impact of cold weather, farmers are planting in October and November to harvest bananas by July-August.

However, Bhamare said there is a huge shortage of small plants grown in labs through tissue culture for planting in the field.

Ajay Kumar, Director of Kedia Commodities, said banana prices in the domestic market will also go up in the coming days as the farmers will not be able to transport the export surplus due to its poor quality.

The problem can be sorted somewhat by planting early and harvesting before the cold weather sets in, he said.