Million dollar mango market hit by middle east war

Pakistan's lucrative mango export industry is grappling with significant losses this season, with traders anticipating a 30% drop in sales. The ongoing Middle East crisis has disrupted demand in key markets, particularly in the Gulf, while simultaneously driving up shipping costs. This economic blow comes at a time when Pakistan's agriculture-dependent economy is already struggling with inflation and the impacts of climate change.

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So many losses have been incurred, the contractors have even left their advance money.

Mohammad Shakeel, an orchard manager in Tando Allahyar, a major mango-growing region, expressed deep concern over his business's ability to cover operational costs. He noted that some contractors have abandoned their leases, leaving behind advance payments due to the incurred losses. The Sindhri variety, a local specialty, is particularly affected.

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Almost 80 per cent of mango export is to the Gulf region, Iran and Afghanistan.

Waheed Ahmed, Chief Patron of the All Pakistan Fruit and Vegetable Exporter Association, explained that approximately 80% of Pakistan's mango exports go to the Gulf region, Iran, and Afghanistan. Conflict in these areas has severely impacted trade. He cited the closure of the Afghanistan border and ongoing conflicts in Iran and the wider Middle East as major impediments. While a preliminary agreement to halt fighting between the United States and Iran was announced, Ahmed stated that the "main challenges still remain" and the timing is too late for the current mango season.

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The border to Afghanistan is closed, there is war in Iran… there is war in the entire Middle East.

The crisis has also affected domestic sales, as local households facing rising inflation are cutting back on non-essential purchases like mangoes. The geopolitical instability underscores the fragility of Pakistan's economy, which relies heavily on agricultural exports. The closure of borders with Afghanistan has also led to a backlog of hundreds of trucks carrying goods, further disrupting trade routes.

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The main challenges still remain.