Fruit prices crash due to export halt, fresh arrivals
Navi Mumbai, March 20 -- Disruption in Gulf-bound exports due to the war in West Asia has triggered a crisis at the Vashi APMC fruit market, with returning consignments flooding the yard and traders struggling to make space for fresh arrivals from farms. Prices of staple summer fruits have crashed, with watermelon taking the largest hit, selling for as low as Rs.6/kg in the wholesale market compared to Rs.30-35/kg around two weeks ago.
"Consumption of watermelon was expected to rise because of the summer heat and Ramzan. Accordingly, large quantities are being brought into the market everyday from Solapur, Sangli, Beed, Latur and Jalgaon in Maharashtra and horticultural belts in Karnataka and Andhra Pradesh," said Vijay Bhardwaj, a wholesale fruit trader at APMC.
Usually, around 100 watermelon-laden trucks arrive every day during summer at the market, Bhardwaj said. "Now, around 150-200 trucks are arriving daily, which is manageable. The problem is the additional load from returning export containers."
Traders said shipments bound for Gulf countries were being routed back to the market after being stranded for nearly two weeks due to the ongoing conflict.
"At least 100-200 export containers are currently making their way back to the market," Bhardwaj said. "The cargo was stuck for 15 days. By the time it reaches the market again, the shelf-life of the fruit would already be over."
While the glut in supply has sent prices crashing, heaps of rotting watermelons are being discarded as traders struggle to make space for fresh arrivals.
"Watermelon is highly perishable. Once it starts deteriorating, there is no option but to throw it away," said trader Vijay Jadhav.
Muskmelon prices have also dropped due to the halt in exports, from Rs.25-Rs.30/kg to Rs.12-Rs.18/kg, while lemon prices have softened from Rs.60-Rs.80/kg to Rs.30-Rs.50/kg. The grape trade has been hit too, with export-quality produce being diverted to the local market, traders said.
"We are facing a double blow now - one from the war and another from the changing weather," said wholesale trader Sagar Desai. "Premium grapes meant for export are now coming into the local market, while farmers are rushing to harvest due to unseasonal conditions."
Wholesale rates for grapes have dropped by nearly 50%, Desai noted. "Vendors who would normally buy 10 crates are now lifting only five. So wholesale lifting has halved just when arrivals are at their peak," he said.
The crisis is having a cascading effect on farmers who were expecting high demand for fruits due to Ramzan.
"The rates we are getting now do not even cover transport costs. If this continues, we will stop bringing our produce to the market," said Shankar Pawar, a farmer from Raigad dsitrict....
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