Iran–Israel conflict hits India’s banana exports; freight jumps to $10,000 per container

INDORE: The Iran-Israel conflict has severely disrupted India's banana export trade, with vessels returning from Iran's Bandar Abbas port and freight charges surging sharply, leaving exporters unable to dispatch orders during the peak Ramzan demand season.Exporters said shipments from Madhya Pradesh's banana belt, contributing around 15% to India's total banana production, came to a near standstill as containers were either being turned back from Iranian ports or getting stuck in transit amid escalating tensions in West Asia. The disruption triggered a sharp fall in domestic prices, leaving growers in distress. The state contributes around 15% of India's total production. Sheikh Lukman Ismaile, an exporter, said the crisis paralysed shipments to Iran. "Freight charges jumped to nearly $10,000 per container from about $2,000 earlier, citing war risk charges." he said. Burhanpur alone has around 25,000 hectares of cultivation, while the main aggregation for exports include Burhanpur, Khandwa, Dhar and Barwani.According to official figures, exports from Burhanpur were around 70,000 metric tonnes in FY 2024-25, while total production in the region crossed 17 lakh MT. Ramzan is the peak demand period for bananas in West Asia. A senior executive at a banana export house, Rahul Patil, said export prices also dropped by over 20 per cent to around $7 per box of 13.5 kg, he said. The export disruption has pushed farm-gate prices down from Rs 1,800-2,500 per quintal last month to Rs 900-1,500 per quintal.