Shortfall of banana supplies covered

Dubai: The shortfall of banana supplies from typhoon-ravaged and flooded Philippines, the largest exporter of the fruit to the GCC, will not impact local supply or prices, Typhoon Pablo had wiped out a quarter of the crop.

The Philippines is the world’s third largest exporter of bananas.

“We do not see much impact as we have a diverse supply chain,” Nandkumar Vijayan, spokesperson for Lulu Hypermarkets.

“We usually buy 400 tonnes of bananas from the Philippines while the rest of our requirements comes from other countries. If there is a shortfall, we will increase supplies from other markets.” However, if new supplies do not fill the gap, consumers might see a price spike for sometime until production returns to normal level which might take a few months.

Kamal Vachani, director of Al Maya Group, says, “Retailers have multiple sourcing of any popular commodities. If there is a shortfall, they usually cover up from other sources. For Al Maya, we source bananas mostly from local suppliers and do not see any affect.

“Having said that, I’m sure retailers and wholesalers would be looking at increased supplies from other markets.”

According to the Philippine Banana Growers and Exporters Association (PBGEA), the deadly storm which has so far killed 475 people could cost the industry $318 million.

The typhoon destroyed 10,000 hectares (24,700 acres) of the country’s 42,000 hectares of banana farms which will require more than nine months from replanting new crops to reap the next harvest.

The Philippines shipped $471 million worth of the fruit last year — accounting for one per cent of total exports.