Indonesia fruit import ban hits trade

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Indonesia tries to protect its durian market

After Indonesia banned the import of 13 horticultural and agricultural products, including durian, to protect its local market, the regional fruit trade has become significantly affected, traders complain.

The products affected by the ban are durians, pineapples, honeydews, bananas, mangos, papayas, potatoes, cabbages, carrots, chili, chrysanthemums, orchids and heliconia, all of which have been banned from being imported from other countries to Indonesia between January and June 2013.

Three kinds of vegetables, cabbage, pepper and broccoli have also been banned, and tight quotes have been set for onion, shallott and garlic.

“Despite it being understandable that Indonesia wants to protect its local market, it is not a good sign to build walls around its economy ahead of the ASEAN Economic Community in 2016, which will hopefully end all restrictions,” a Bangkok-based analyst said.

Thailand in particular has been hit by the durian import ban. Indonesia is a large market for Thai durian, with approximately a value of  $21 million of the fruit shipped to Indonesia each year.

The ban will affect Thai durian growers hard, especially because the ministry projects the durian harvest in 2013 will be 529,500 tonnes, up by 1.12 per cent from 2012.

The Thai Agriculture Ministry will try to negotiate with Indonesia for the lifting of the ban, officials said.

Moreover, due to bad weather and disruption by floods, Indonesia currently faces low domestic supply of many of the fruits mentioned, causing prices on local markets to rise. For example, the price of papaya had increased from 1,000 to 2,000 rupiah per kilogramme, Kafi Kurnia, Chairman of the Indonesian Association of Exporters and Importers of Fruits and Vegetables, said.

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Reading Time: 2 minutes

Indonesia tries to protect its durian market

After Indonesia banned the import of 13 horticultural and agricultural products, including durian, to protect its local market, the regional fruit trade has become significantly affected, traders complain.

Reading Time: 2 minutes

Indonesia tries to protect its durian market

After Indonesia banned the import of 13 horticultural and agricultural products, including durian, to protect its local market, the regional fruit trade has become significantly affected, traders complain.

The products affected by the ban are durians, pineapples, honeydews, bananas, mangos, papayas, potatoes, cabbages, carrots, chili, chrysanthemums, orchids and heliconia, all of which have been banned from being imported from other countries to Indonesia between January and June 2013.

Three kinds of vegetables, cabbage, pepper and broccoli have also been banned, and tight quotes have been set for onion, shallott and garlic.

“Despite it being understandable that Indonesia wants to protect its local market, it is not a good sign to build walls around its economy ahead of the ASEAN Economic Community in 2016, which will hopefully end all restrictions,” a Bangkok-based analyst said.

Thailand in particular has been hit by the durian import ban. Indonesia is a large market for Thai durian, with approximately a value of  $21 million of the fruit shipped to Indonesia each year.

The ban will affect Thai durian growers hard, especially because the ministry projects the durian harvest in 2013 will be 529,500 tonnes, up by 1.12 per cent from 2012.

The Thai Agriculture Ministry will try to negotiate with Indonesia for the lifting of the ban, officials said.

Moreover, due to bad weather and disruption by floods, Indonesia currently faces low domestic supply of many of the fruits mentioned, causing prices on local markets to rise. For example, the price of papaya had increased from 1,000 to 2,000 rupiah per kilogramme, Kafi Kurnia, Chairman of the Indonesian Association of Exporters and Importers of Fruits and Vegetables, said.

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