Bengaluru: Escalating tensions and attacks in West Asia are raising concerns among Bengaluru’s importers and exporters, with traders reporting higher prices for dates and other dry fruits amid rising transportation costs and uncertainty over shipping routes.
The impact is already being felt in the market, particularly in products imported from Saudi Arabia and other parts of the region. Traders said the prices of popular Saudi dates have increased, while Zamzam water has also become more expensive amid logistical challenges.
The extent of the disruption will depend on how long the conflict continues and whether shipping routes, port operations and cargo movements across the region face further interruptions.
Saudi dates become costlier in Bengaluru
Abdul Hameed, owner of K H Pansari in Shivaji Nagar, said the cost of several varieties of Saudi dates had increased by around Rs 100 per kg.
Kimia, Kalmi and Ajwa dates are among the varieties popular with Indian consumers. According to Hameed, Ajwa dates are currently retailing at around Rs 900 per kg, while Kalmi dates are selling at approximately Rs 650 per kg.
Dates are purchased by households throughout the year and see additional demand during religious and festive occasions. They are also bought in bulk by hotels and other businesses, making changes in import and transportation costs significant for traders.
The price increases could affect retailers and consumers if higher procurement and freight costs continue to be passed down the supply chain.
Traders said the situation remains uncertain, as the prices of imported goods depend not only on availability at the source but also on transportation, insurance and other logistics expenses.
Zamzam water prices rise amid logistical challenges
Zamzam water, which is brought into India through regulated channels for religious purposes, has also been affected by the reported logistical difficulties.
According to traders, a five-litre can that previously retailed at around Rs 1,500 is now being sold for approximately Rs 2,200.
The increase reflects the pressure on supply and distribution costs reported by sellers. However, the duration of the price rise and its broader impact on availability remain uncertain.
Traders said further changes would depend on the movement of cargo, the availability of supplies and the ability of importers to secure shipments without substantial additional costs.
Container transportation costs increase
Higher freight charges are another concern for Bengaluru’s trading community. Mohammed Idris Choudhury, general secretary of the Russell Market Traders’ Association, said the cost of transporting a shipping container had increased to Rs 4,000 from Rs 1,500.
He said the additional expense would ultimately be reflected in the prices of goods sold to consumers.
Choudhury noted that dates remained a popular purchase throughout the year, beyond their seasonal demand. They are also regularly purchased by five-star hotels and other commercial establishments.
Freight costs can influence prices across several stages of the supply chain, from importers and wholesalers to retailers. If transportation expenses remain elevated, businesses may have to revise selling prices or absorb part of the increase, depending on market conditions.
The impact on consumers will vary according to the product, the quantity imported, existing stocks and the extent to which additional expenses are passed on.
Alternative trade routes face uncertainty
Traders have also expressed concern about the possible effects on dry fruits originating in Iran and Afghanistan.
Choudhury said some dry fruit products from these countries had previously been transported through Saudi Arabia, which traders regarded as an important route for moving goods into India. The latest developments could complicate these supply arrangements.
Any disruption to established trade corridors can force importers to explore alternative routes, potentially increasing delivery times and transportation costs. Changes in maritime security conditions may also lead to higher insurance premiums, vessel diversions and delays at ports.
The extent to which individual shipments are affected will depend on their origin, the routes used and the availability of alternative transport arrangements.
The wider regional conflict has already created uncertainty for businesses that rely on international supply chains. Traders are watching developments closely as they assess the potential impact on procurement and pricing.
Iranian and Afghan dry fruits see price increases
Some imported dry fruits have recorded significant price increases, according to traders.
The price of one kilogram of Mamra almonds has reportedly risen from Rs 2,500 to Rs 4,000. The price of figs has increased from a range of Rs 1,200 to Rs 1,400 per kg to around Rs 1,800 per kg.
These increases add to the pressure on traders dealing in imported produce, particularly premium dry fruits that already command higher prices.
Import costs can be affected by several factors, including availability at the source, exchange rates, freight charges, insurance and the route used for transportation. The relative contribution of each factor to the reported increases has not been specified.
If disruptions continue, traders may face additional challenges in maintaining existing prices and ensuring a steady supply of products.
Traders await clarity on the duration of the conflict
Bengaluru’s importers and exporters are now assessing how the evolving situation could affect their businesses in the coming weeks.
The immediate concerns include rising transportation expenses, delays in cargo movement and uncertainty over the routes available for shipments from West Asia. Businesses dealing in dates, Zamzam water and imported dry fruits are among those reporting price pressures.
The longer-term impact will depend on the intensity and duration of the conflict, the security of shipping corridors and the ability of traders to secure alternative supply arrangements.
For consumers, the key concern is whether the higher costs will persist and lead to further increases in retail prices. For traders, the priority is maintaining supplies while managing the additional expenses associated with importing goods.
As developments in West Asia continue to unfold, Bengaluru’s trading community will be watching for signs of improved shipping conditions and greater stability in freight costs.