Thai fruit traders face heat over Cambodia’s ban

Thai fruit traders face heat over Cambodia’s ban

Industry insiders are of the view that fruit markets of both countries are highly interconnected through trade, processing and shared production, and the ban has had a huge negative impact on fruit traders of Thailand.

Thailand’s fruit exporting firms, traders and farmers are under severe pressure after Cambodia imposed a ban on fruit exports following the border tensions between the two nations.

Industry insiders say the fruit markets of both countries are highly interconnected through trade, processing and shared production and the ban beginning June 17 has had a huge negative impact on fruit traders of Thailand.

The ban has already created an oversupply in Thai market amid the timing of the decision coinciding with the peak season for many Thai tropical fruits.

Speaking to Khmer Times, Sinu Keeler, an exporter of Thai fruits and vegetables to various countries, said the ban has adversely affected the Thai fruit industry beyond the levels expected, owing to a combination of factors.

“Geographical proximity is important in any trade. Although Cambodia is not the largest importer of Thai fruits, it is one of the most profit-generating markets for Thai traders. And this is mainly because of the lower transportation costs.

“In any trade, profit generation matters more than the volume of trade and this ban has affected the profits badly.

“This is the peak season for many tropical fruits and switching export markets instantly is impossible and the only option left for the fruit growers and traders is to flood the local market, which will cause a sudden fall in prices.”

He said fruit traders in Cambodia would also be feeling the same amount of heat as the fruit markets of both countries are deeply linked.

“Thousands of Cambodians are employed in the fruit-processing industries and in farms, mostly located in the bordering provinces of Thailand. The return of workers back home following the border crisis is also serving a blow to the country’s fruit industry.”

“The ban has created considerable pressure in Thailand’s domestic market,” Ritu Ahluwalia, head of imports and business relationship manager for major distributor Flora Capital, told Fruitnet, a website specialising in global trade of fruits and vegetables.

“The closure comes at a particularly challenging time as Thailand is experiencing a strong harvest season for tropical fruits like durian, longan, and rambutan.”

Wipa Sunate, Chairwoman of the Trat Chamber of Commerce, told Thai media that Trat is one of the most affected provinces of Thailand after Cambodia banned fruit imports from the country.

“The move will definitely weaken the economy of Trat, which has seen a drop in investor confidence.”

She has already alerted the Thai Chamber of Commerce about the possible negative outcomes for the Thai fruit farming community and provincial economies, urging them to raise the issues before the Thai government.

Stepping in to address the impending crisis, the Thai-Cambodian Border Operations Centre (TCBOC) has announced plans to support fruit farmers in the country affected by border restrictions.

The measures taken by TCBOC include organising the ‘Thai Fruit Festival 2025’ with malls and wholesale markets, distributing mangoes as gifts at 1,097 gas stations in Bangkok and nearby provinces, and selling fruit at state-run stores.

Other steps include promoting corporate social responsibility purchases by government and private organisations and partnering with companies like Tao Bin, the vending machines operator, and AirAsia to buy fruits for smoothies and in-flight meals, Bangkok Post reported.

On the flip side, fruit farmers in the Kingdom are also feeling the heat as Thailand is one of the largest importer of Cambodian fruits. The authorities, at provincial levels, have stepped in to support these fruit farmers by creating new channels of distribution aimed at increasing domestic consumption.

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