Algeria: Banana crisis worsened during Ramadan

2025-03-21

The price of bananas in Algeria has reached record highs during this holy month of Ramadan. The reason behind this surge is a combination of speculation and the ongoing Sahrawi issue.

Each Ramadan, there tends to be a story about shortages or alarming price hikes. This year is no different, as the price of bananas has increased dramatically, a fruit that was once affordable for consumers.

The National Association for the Protection and Guidance of the Consumer and its Environment (Apoce) launched a campaign to boycott bananas on March 19. This symbolic date coincides with Victory Day in Algeria, commemorating the signing of the Evian Accords in 1962. The association urges consumers not to purchase bananas priced above 260 to 300 dinars (DA) per kilo (USD 1.94 to 2.24), noting that the actual cost upon arrival at the importer ranges from 200 to 240 DA (USD 1.49 to 1.79), including all expenses. Since the beginning of Ramadan, the price for a kilo of bananas has surged from 300 to 600 DA (USD 2.24-4.47), then suddenly jumped to 700-800 DA (USD 5.22 – 5.96) in less than ten days.

According to the General Union of Algerian Traders and Craftsmen (UGCAA), importers are to blame. They are accused of manipulating prices through opaque practices. The UGCAA pointed out on its Facebook page that "some importers sell bananas at high prices while imposing lower prices on traders." This organisation noted that it had previously warned about these fraudulent activities over a year ago, yet no decisive action was taken.

In response, the Ministry of Commerce published a list of 53 import companies whose activities have been banned "immediately and definitively." A multi-sectoral commission responsible for allocating licenses for import quotas concluded that these importers had failed to meet their commitments to the state regarding the import of bananas. According to the commission, this failure has led to disruptions in the national market, directly impacting citizens' purchasing power and destabilising the market.

Additionally, it was reported that the authorities had begun seizing containers of bananas. In Annaba, located east of the country, 34 containers containing 800 metric tons of bananas were seized after the importer refused to clear the goods through customs. In Tipaza, control services confiscated 2,6 tons of bananas for failing to register in the commercial register and for lack of invoicing. In Oran, a shopkeeper was sentenced to fifteen years in prison for "speculation."

They are thieves," said an Algiers trader, reflecting on the ongoing banana crisis. This situation dates to last year when the authorities struggled to combat the importers' cartel. During Ramadan 2024, the Ministry of Trade called for a boycott of bananas due to escalating prices. "While we were focused on regulating the prices of potatoes and zucchini, some took advantage of the situation to raise wholesale banana prices to 470 DA or even 480 DA (USD 3.50-3.58)," stated the Minister of Trade, Tayeb Zitouni, during Ramadan 2024. He directed his frustration towards the importers: "They are thieves". "They import bananas for less than a dollar but sell them wholesale for 470 to 480 DA (USD 3.50-3.58)". Retail prices have soared to 500 to 600 DA (USD 3.73-4.47)." The daily newspaper El Watan commented, "It is clear that the efforts to regulate supply and distribution channels have not succeeded in controlling banana prices." According to industry sources, however, the import prices mentioned by the Minister were a total deviation from the truth. The problems are caused by the ban on importing bananas from Ecuador, and the crisis has been exacerbated by the difficulties in finding alternative origins for import. In this period of the year and for some more weeks, there are no reliable alternatives from other producing countries in Central America or South America, said an expert in the international banana trade. Several Algerian banana importers were "desperately" trying to find alternative banana suppliers out of Ecuador at the Fruit Logistica fair in Berlin in February but without success. According to industry sources, around 1,38 million fewer banana boxes were shipped from Ecuador to Algeria in January. The problem originated, according to Algerian sources, after Ecuador's withdrawal of recognition of the Sahrawi Arab Democratic Republic (SADR) last October, which reportedly angered Algiers and reduced or stopped economic trade with Ecuador.