The Taliban takeover of Afghanistan has had a negative influence on the import-export trade in India, which is the main recipient of Afghanistan’s exports, a trend that has concerned businessmen, particularly those buying dry fruits. Afghan exports to India include dried raisins, walnuts, almonds, figs, pine nuts, pistachios, dried apricots, and fresh fruits including apricots, cherries, and watermelons, as well as medicinal plants. According to merchants, India’s exports to Afghanistan include tea, coffee, pepper, and cotton, as well as toys, footwear, and a variety of other consumable products.
The majority of Afghan imports pass through Pakistan. Import-export shipments are presently stalled, which may result in significant losses for dealers, who may also have substantial sums of money delayed.
Vineet Sethi of Verdure Herbals in Delhi’s Khari Baoli stated that his dry fruits shipment arrives via Attari (in Punjab), but it has been halted for the last one and a half months.
“We have not been in touch with individuals at that end for the last four days,” said a concerned Rajendra Bhatia of Ramco Traders in Mumbai, which deals in dry fruits and imports from Afghanistan.
Bhatia stated that his company imported a truckload of dry fruits every week via road and that he now has no choice but to wait and watch.
Hundreds of traders, including Sethi and Bhatia, have experienced difficulties in recent days. Cargo movement has been completely halted for the previous two days.
Ajay Sahay, Director General, and CEO of the Federation of Indian Export Organizations (FIEO), informed the media, “We have been given the understanding that they (Taliban) are conducting a review shortly because the Taliban have indicated that they will ensure that companies are not harmed.” I’m not sure how long it will last, but this is the scenario for the time being.”
In 2020-21, bilateral trade between India and Afghanistan was valued at USD 1.4 billion, down from USD 1.52 billion in 2019-20. According to the Confederation of All India Traders (CAIT), a leading organization representing eight lakh traders across India, exports from India totaled USD 826 million in 2020-21, while imports totaled USD 510 million.
Most of India’s exports are routed through international north-south trade corridors or through Dubai, thus it has not been directly impacted. “However, in light of the increasing uncertainty, wherever exporters have time for the delivery term, they are delaying shipments. We warn them whenever they are due to make the shipments. We advise them to acquire credit insurance whenever they are expected to make shipments so that they are not excessively concerned if the money does not arrive. As a result, they should insure themselves,” Sahay explained.
The traders have no idea what type of orders would be issued to the banks or what kinds of activities will be halted, he added.
Praveen Khandelwal, secretary-general of CAIT, encouraged domestic exporters to be vigilant and keep a close eye on events. He also asked the government to “take notice of it and assist traders in the case of a financial catastrophe.”
The demand for dry fruits has grown throughout the rainy season and owing to Raksha Bandhan, but with the Taliban taking over Afghanistan, imports of dry fruits have been hampered, resulting in a spike in dry fruit prices.
The demand for dry fruits has grown throughout the rainy season and because of Raksha Bandhan, but owing to a lack of supply, prices have risen by 7-12 percent. Within a week, prices had risen by Rs. 200-250 per kilogram.
Imports from Afghanistan have been hindered for the past 15-20 days, according to Jyoti Gupta, President of the Jammu Dry Fruits Retailer Association.
“It is quite difficult to explain to clients why costs have risen to Rs. 250 per kilogram in just 10 days. But we are powerless. To minimize any problems with consumers, I have changed the tariff list to reflect the current circumstances “According to ANI, Gupta stated.
Gupta went on to say that the demand for dried fruits is strong during the festival season as well as because of the current epidemic.
“We import a variety of products from Afghanistan, including almonds, figs, apricots, pistachios, and cumin. Because figs are thought to boost immunity, they are in great demand during the epidemic. However, with the suspension of imports, prices have risen “Gupta stated.
Afghan almonds, figs, apricots, and raisins have increased in price by Rs 200 per kilogram, while pistachios have climbed in price by Rs 250 per kilogram. Check out the rates shown below:
Afghan Almonds: Rs. 600/Kg Now Rs. 800/Kg
Apricot: From Rs. 400/Kg to now Rs. 600/Kg
Fig: From Rs. 800/Kg to now Rs. 1000/Kg
Munakka: Rs. 550/Kg now Rs. 750/Kg
Pistachio: From Rs. 1750/Kg to now Rs. 2000/Kg
Dry fruit prices have also risen in Delhi’s wholesale and retail marketplaces. According to Kanwarjit Bajaj, president of the Indo-Afghan Chamber of Commerce, there has been an influence on pricing, with prices now increasing by 5-10 percent in Delhi and nearby regions, and if this scenario persists for a few more days, it may become tough.