After record lows, banana prices skyrocket in Bengaluru

Traders say supply crunch occurred as many farmers gave up on cultivating bananas as they received some of the lowest prices ever during the two years of COVID-19

Usually a staple fruit in most households, buying bananas now will burn a hole in the pockets of consumers. For the first time in over five years, the prices of the fruit have hit record highs.

At wholesale markets in Bengaluru, the yelakki variety has been priced at ₹65 per kg, while retail prices have crossed ₹90 at several places, including HOPCOMS.

It has also crossed the ₹100 mark on online platforms. This trend is expected to continue for at least the next six months as arrivals in the markets have taken a drastic hit. 

While the regular arrival of bananas at the Binny Mill Banana Market was over 250 tonnes a day, it has now come down to 90 to 100 tonnes. The traders say that the supply crunch occurred as many farmers gave up on cultivating bananas as they received some of the lowest prices ever for the crop during the two years of COVID-19.

“The prices during the last two years were mostly just 25% of the average rates. That is why farmers chose not to grow bananas this year, which obviously led to lower arrivals. Due to this, between March and now, the prices have doubled,” said K.G. Purushotham, president, Banana Fruits Merchants’ Association. 

Apart from the yelakki variety at ₹60 to ₹65 at the wholesale markets, the robusta variety is at ₹20 to ₹23 per kg. The nendra variety is ₹55 to ₹60, while the c handra variety is at ₹40 to ₹45. Mr. Purushotham added that the current prices are 50% more than the average price for around seven years. 

“The arrivals from neighbouring States have also reduced this season. The arrivals from Tamil Nadu are mostly diverted to Kerala as it is a bigger market than we are. Robusta on the other hand has to come only from Andhra Pradesh as our State’s production is only 10 to 15%. However, those arrivals are also less,” he explained.