Dried Fruit prices: If you’re planning to purchase dried fruits, be prepared to spend a bit more. Traders in Hyderabad report that the ongoing conflict involving Iran, Israel, and the United States, along with tensions at the Afghanistan and Pakistan borders, has completely disrupted the supply chain.
Supply chain issues complicate calculations
Countries such as Afghanistan, Iran, Turkey, and Saudi Arabia are significant producers and exporters of dried fruits. According to traders in Hyderabad, the war has nearly stopped the flow of goods from these areas. Due to border tensions, trucks and containers filled with products are stuck, resulting in a critical supply shortage in the markets.
Rising freight costs
Air freight: Shipping goods by air is significantly more costly than by road.
Effect: The increased costs have been directly transferred to consumers, causing prices for items like cashew nuts, almonds, pistachios, and figs to rise dramatically overnight.
What are the traders saying?
Aman Khan, the owner of ‘Afghan Baghban’ in Hyderabad, stated, “The ongoing war for the last 20 days has greatly impacted our business. Supplies from Turkey, Dubai, and Saudi Arabia have nearly ceased. The products arriving from Afghanistan now need to be flown in. We are struggling to persuade customers to accept such high prices.”
He explained that Afghanistan remains a major supplier to his store, but ongoing tensions in the region have disrupted trade. He added, “Most of our exports come from Afghanistan. The tensions over the past 8-10 days have disrupted our operations significantly.” He added that product supplies from Turkey, Dubai, and Saudi Arabia have virtually stopped, leading to a sharp increase in prices.
Khan said, “The impact is visible because goods from Turkey, Dubai, and Saudi Arabia have stopped arriving, leading to a 30-40 percent increase in prices. Products from Afghanistan are now arriving by air.” However, he added that air cargo significantly increases operational costs. He added, “The problem with air cargo is that it’s very expensive. It’s very difficult for us to convince customers and remain stable in the market.”