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Afghanistan turmoil may lead to rise in dry fruit prices. Here's how
A senior representative of the Indian export body said at present, the Taliban have barred movement of all forms of cargo through transit routes in Pakistan, thereby stopping all imports from the war-torn country.
Prices of dry fruits are likely to rise in India after the Taliban stopped all import and export of goods with India following their swift coming to power in Afghanistan on Sunday.
A senior representative of the Indian export body said at present, the Taliban have barred movement of all forms of cargo through transit routes in Pakistan, thereby stopping all imports from the war-torn country.
India has centuries-old trade ties with Afghanistan along with a massive investment worth $3 billion at the moment. Some of the key products that are exported from India are sugar, pharmaceuticals, apparel, tea, coffee, spices and transmission towers, while imports are largely dependent on dry fruits, besides some gum and onions.
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The latest turmoil in Afghanistan may now lead to a rise in dry fruits prices as 85 per cent of India’s dry fruits come from the neighbouring nation.
Prices of dry fruits had already been affected even before the Taliban's final assault on Kabul as traders in Jammu has spoken about the disruption that happened over the last 10-15 days.
The director general of the Federation of Indian Export Organisation, Ajay Sahai, said the authorities were keeping a close eye on the developments in Afghanistan.
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"I will say that (the crisis) may not directly impact the prices, but the very fact that one of the sources of import no longer exists, speculation of increase in prices cannot be ruled out," Sahai was quoted as saying by news agency ANI.
"Imports from Afghanistan come through the transit route of Pakistan. As of now, the Taliban has stopped the movement of cargo to Pakistan, so virtually imports have stopped," he said.
"We are one of the largest partners of Afghanistan and our exports to Afghanistan are worth around $835 million for 2021. We imported goods worth around $510 million. We also have a sizable investment in Afghanistan. We have invested around $3 billion in Afghanistan and there are 400-odd projects in Afghanistan some of which are underway," Sahai said.
"...Some of the goods are exported from the international north-south transport corridor route that is working fine now. Some of the goods go through the Dubai route and that is also operational," he added.
Meanwhile, in Jammu the prices of Afghan almonds, figs, apricots and raisins have increased by ₹200 per kilogram, while that of pistachio has increased by ₹250 per kilogram.
Despite the fast-evolving situation in Afghanistan, the senior official expressed hope that trade ties would normalise soon.
"I am pretty sure over a period of time Afghanistan will also realise that economic development is the only way to move forward and they will continue with that kind of trade. I think the new regime will like to have political legitimacy and for that India's role will become important for them also," Sahai further said.
(With agency inputs)
