Afghanistan crisis will badly impact bilateral trade, huge losses expected for traders: CAIT

With recent overtaking of regime in Afghanistan, the bilateral trade between Kabul and India will be impacted badly since the future is uncertain, said Sushil Kumar Jain, Convener Delhi NCR unit of the Confederation of All India Traders (CAIT), the premier organisation of 8 crores traders of the Country.

Afghan exports to India include dried raisin, walnut, almond, fig, pine nut, pistachios, dried apricot and fresh fruits such as apricot, cherry, watermelon, and medicinal herbs. India’s exports to Afghanistan include tea, coffee, pepper and cotton, toys, footwear and various other consumable items, said B. C. Bhartia, National President & Mr Praveen Khandelwal .

Mr Sushil Kumar Jain said the bilateral trade between India & Afghanistan was USD 1.4 billion in 2020-21 as against USD 1.52 billion in 2019-20. Exports from India were USD 826 million and imports were aggregated at USD 510 million in 2020-21.

Mr Bhartia & Mr Khandelwal said that prices in the markets may go up due to uncertainty of political situation in Afghanistan. Currently the imports exports shipments are stranded which may cause heavy losses to the traders.

They advised domestic exporters to remain alert and gave a sharp eye on the developments. Huge amount of payments are likely to be blocked which will put traders in vulnerable situation. “The Government must take a cognizance of it and help the traders in event of facing financial crisis,” they said.

They further stated that there would be a complete standstill in the trade for a certain time, as the situation is out of control in Afghanistan.

“It is a landlocked country and the air route is the main medium of exports and that has been disrupted. Trade will resume only after the uncertainty is over.”

In most likelihood, the private players will have to deal through third parties to export to Afghanistan but it all depends on what the situation is. Exports from India will be completely halted for now as there will be an issue of timely payment.