Afghanistan crisis to impact bilateral trade with India adversely: CAIT

The Taliban takeover of Afghanistan will bear an adverse impact on India's bilateral trade with the landlocked nation, according to the Confederation of All India Traders (CAIT). Trade between the two nations amounted to $1.4 billion in 2020-21 versus $1.52 billion in 2019-20.

Exports from Afghanistan comprise dry fruits like dried raisin, walnut, fig, pine nut, almond, dried apricot and pistachios and fresh fruits such as watermelon, cherry, apricot and medicinal herbs.  CAIT also said that prices of some commodities may also go up in the Indian markets due to uncertainty over bilateral trade and relations with Afghanistan. Exports from India stood at $826 million whereas imports amounted to $510 million in FY21, the traders' body said.

Also read: $83 billion spent on Afghan army ultimately benefits Taliban

The body has also requested domestic exporters to keep a close watch on the developments in Afghanistan, adding a huge amount of payments are likely to be blocked. CAIT Secretary General Praveen Khandelwal also implored Union Commerce and Industry Minister Piyush Goyal to take immediate cognisance of the issues faced by exporters and importers due to the Afghanistan crisis.

"Traders particularly exports-importers dealing with Afghanistan likely to face financial crisis. We urge @CimGOI Shri @PiyushGoyal to take immediate cognisance," Khandelwal tweeted.

CAIT's top members also expressed concerns over a complete pause in trade with Afghanistan for a certain period citing volatile security situation in the country. "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 eases. Private players will have to deal through third countries to export to Afghanistan, but it all depends on how the situation evolves," the traders' consortium said.

Edited by Mehak Agarwal

Also read: Images from Afghanistan 'gut-wrenching' but I stand 'squarely behind' my decision: Joe Biden