Exports of mango and banana from Andhra Pradesh's Rayalaseema region have faced a serious threat from the ongoing West Asian crisis. Photos: iStock
How Iran conflict is devastating mango and banana farmers in Andhra
As shipping costs surge up to 600 per cent and the Strait of Hormuz remains blocked, the state's farmers face a brutal price crash and a 'buyer-less' season
For Andhra Pradesh’s Rayalaseema region, drought has been a perennial challenge for the local agriculture. And now, something distant has added to the woes. The ripple effects of the ongoing war in West Asia have reached the region’s mango orchards and banana plantations, dealing a severe blow to farmers and agro-industries already battered by years of geopolitical turmoil.
Mango trade hit
In Chittoor, one of the districts in Rayalaseema and home to 47 mango pulping units capable of processing seven lakh tonnes of mangoes per season, the crisis could not have come at a worse time. As the new mango season gets underway, not a single buyer from the Arab world or West Asia has stepped forward to sign a purchase contract — a process that typically wraps up between late March and early April.
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The reason is stark: the closure of the Strait of Hormuz has made shipping to key markets such as Saudi Arabia, Oman, and Dubai (in the United Arab Emirates) virtually impossible. Importers have begun cancelling shipments, leaving nearly one lakh tonnes of last year's processed pulp sitting in warehouses with nowhere to go.
“Containers have been cancelled. The owners themselves are not in a position to export,” said Govardhana Bobby, who heads the Chittoor District Mango Pulp Industry Owners Association. The financial strain is compounding fast. Shipping a container via the Red Sea once cost around USD 1,000. Now, with vessels forced to reroute around Sri Lanka, that cost has ballooned to USD 5,000-6,000 — a staggering 500–600 per cent increase.
The crisis also has deep roots. Last year, the Russia-Ukraine war disrupted European markets, while Israel’s offensive in Gaza and a 28-30 per cent import duty on Indian products further hammered the industry. Owners had already sought a bank loan moratorium then. Now, with a new front opening, the pressure is unbearable.
"We are unable to venture into exports because it is a very costly affair," Bobby said. He is calling on the government to intervene before the industry collapses entirely.
About 88,000 farmers cultivate mango orchards across 1.10 lakh hectares in Chittoor district. With the season just beginning and no buyers in sight, their livelihoods hang in the balance.
Banana exports choked
The crisis extends beyond mangoes. In Anantapur and Kadapa districts, the war has choked off banana exports entirely. Around 600 tonnes of bananas were being exported daily from these two districts to markets in Kuwait, the UAE, Iran, Iraq, and the UK. That flow has now stopped — costing farmers an estimated Rs 2-3 crore every single day.
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In Anantapur, 15,990 hectares are under banana cultivation. Delhi-based traders, who typically export 15–20 per cent of the district's produce to West Asian markets, have gone quiet.
“Forty vehicles carrying 12-tonne containers pass through Tadipatri from Anantapur daily,” said district Horticulture Officer Rajyalakshmi, underscoring just how much of the local economy depends on these exports.
The market has responded brutally. Banana prices in Anantapur, which stood at Rs 22,000 per tonne just 10 days ago, have crashed to Rs 13,000–15,000. The entire burden has shifted to already-saturated domestic markets in Delhi, Punjab, Jammu, and Maharashtra.
The situation in Pulivendula, Kadapa district, is equally grim. In Tondur, Vemula, and Lingala Mandal alone, over 26,000 acres are under banana cultivation, with 40 per cent of the yield typically exported to Gulf countries.
“A ton of bananas was priced at Rs 20,000–25,000 just 10 days ago. Now it has fallen to Rs 7,000–9,000,” said farmer Srinivasulu Reddy.
Farmers in disarray
With middlemen stepping in to buy at distressed prices, farmers say they are bearing the full weight of a geopolitical crisis they had no hand in creating.
“I am cultivating banana plantations on 10 acres, and the farmer is not even getting Rs 8,000–9,000 per tonne,” said Harinath Reddy from the state’s Ammakapalle.
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Horticulture officials in both districts say they are monitoring the situation and working to redirect produce to domestic markets — but acknowledge this is, at best, a stopgap. Market analysts warn the crisis will persist as long as the Iran war keeps West Asia’s shipping lanes closed.
(The article was originally published in The Federal Andhra Pradesh.)
