West Asia crisis hits date trade, prices jump as supplies shrink in Indore

Indore: The West Asia crisis is beginning to ripple through India’s dry fruit trade, with supplies of dates and dry dates falling sharply in Indore, one of Madhya Pradesh’s biggest trading hubs. Traders say delayed cargo movement and shipping bottlenecks from Iran, Iraq and the UAE have pushed prices up by 10 to 30% and left inventories tighter.

India imports a large share of its dates from the UAE, Iran and Iraq, and the trade usually moves through Gulf hubs such as Dubai. But disruptions in maritime movement have raised freight and insurance costs, slowed transit times and made importers more cautious about replenishing stocks.

The strain is showing up in Indore’s wholesale economy, where Siyaganj — one of the city’s oldest kirana markets with nearly 500 shops — along with wholesale clusters in Malharganj, Malwa Mill and Marothia Bazar — serves as a key distribution centre for dry fruits and groceries across much of Madhya Pradesh.

Traders in Siyaganj said about 30 to 40 tonnes of dates and dry dates arrive in Indore every day, and nearly 90% of that supply is consumed in Indore and markets across the state.

“Date supplies have reduced to almost negligible levels and prices of several dry fruits have gone up because of shipping line disruptions. Dates and dry dates earlier used to come through Dubai, but disturbances in sea routes have affected trade. Indore is a major distribution centre and supplies from here move across the state, particularly to tier-2 and tier-3 cities,” said president of the Siyaganj Wholesale Kirana Merchant Association, Ramesh Khandelwal.

The fruit is not just a seasonal delicacy. Traders said dates and dry dates are used widely by bakeries, confectionery makers, sweet shops, namkeen manufacturers, dry fruit retailers and ayurvedic formulation makers, apart from household consumers. Demand usually jumps in winter and during Ramazan, when both retail and institutional buying rises.

The pressure is visible beyond Indore too. “Prices of dates have jumped sharply and almost all dry fruits have become costlier due to disruptions in cargo movement and shipping,” said a dry fruits trader from Bhopal, Siddharth Rajdev.

Industry representatives said the disruption matters because Indore remains a crucial consumption and distribution centre for dry dates. “The West Asia crisis has adversely impacted supplies of both dates and dry dates to India. Indore is a major market for dry dates. Demand usually drops during summer and picks up again during winter. The new season is now expected to begin with higher prices because supplies have been impacted,” said a date trader from Siyaganj, Prateek Tiwari.

Importers and wholesalers added that higher freight costs and uncertain shipping schedules are also discouraging advance purchases, as traders turn more guarded about inventory positions.