Fruit prices skyrocket as Sri Lanka struggles to cope with turmoil

Colombo, Apr 05: The prices in Sri Lanka continue to skyrocket and there is no respite in sight for the economy.

The prices of fruits and vegetables have seen a sharp increase in recent days. News agency ANI while quoting vendors said that around 3 to 4 months back the price of the black apple was Rs 500 a kg. Today it stands at Rs 1,000 per kilogram, a vendor by the name Farukh said.

He also said that the prices of pears have risen from Rs 700 a kilogram to Rs 1,500 per kg. He also added that people do not have the money to buy.

With the growing economic crisis in the island country, tea factories are struggling to run their operations, said South India Tea Exporters Association chairman Dipak Shah who had recently returned from Sri Lanka's capital Colombo.

"Almost all units in Sri Lanka are witnessing power cut for almost 12-13 hours a day and have not enough fuel to run their generators. Generally, disruption in the production process leads to a decline in quality. Apart from this, there is less rain. I think the production could fall by 20-25 per cent in our neighbouring country," Shah told PTI.

He also said such a scenario could provide "much better days for Indian exporters", particularly if the trade with Russia gets improved with a rupee-ruble payment mechanism.

Indian Tea Exporters' Association Chairman Anshuman Kanoria said the industry is expecting that the island country's crop might be lower by around 15 per cent this year because of its economic condition.

"Shortages of fertiliser, diesel and other production inputs would hit its output. We have already seen international buyers, who need Sri Lankan tea for their blend, have started paying higher prices as tea from that country has become expensive by around 10-20 per cent," he told PTI.

Both Indian and Sri Lankan orthodox teas are popular in Russia, and India's dependence on the CIS country for the export of the beverage is significant.

(With PTI inputs)