India’s agri products export to Afghanistan, which was not disrupted despite Taliban-led government yet to be recognised, may see a further slump this fiscal due to closure of Pakistan route and likely disruption via Iran after it dropped more than 20 per cent to $ 82.6 million in FY25.

Among the top five agri items, export of oilmeals remained at top with $ 27.37 million followed by tobacco with $ 15.91 million in 2024-25, and both have reported positive growth.

However, exports of spices at $ 11.92 million, sugar at $ 8.69 million and processed fruits (including juices) at $ 5.51 million dropped last fiscal from 2023-24.

“Afghanistan is a good market for Indian sugar and there should be regular export since quantity is small. After the India-Pakistan conflict over Pahalgam terrorist attack, the Karachi route is closed. Now that there was discussions happening to ship through Bandar Abbas in Iran, the air strikes by Israel has closed that option for now, at least till there is clarity on goods movements,” said a sugar exporter from India.

Out of 5,16,782 tonnes of sugar exported out of the country until May 31, against 1 million tonnes (mt) permitted by the government, as high as 72,833 tonnes have been shipped to Afghanistan alone, according to All India Sugar Trade Association.

The government in January 20 allowed 1 mt sugar export to be completed by September 30. Trade sources said that 5,000-6,000 tonnes contracted for supply to Afghanistan may further be shipped depending on geo-political situation.

After Taliban took over charge of the Afghanistan government in 2021, ousting the US-installed regime, trade was never affected as export-import continued despite there is no formal recognition so far, traders said adding there is no ban on export-import to/from that country and most of the deals happening on USD terms through normal banking channel as Afghanistan International Bank is operational.

On the other hand import of agri items from Afghanistan, which is known for exotic dry fruits, has surged to record $688 million in 2024-25, up from over $ 641 million in FY24. The government is yet to share import data in current fiscal, whereas during April-May 2024, the agri import was nearly $ 58 million.

The major agri items imported from Afghanistan include raisins (dried grapes), apples, garlic, apricots, dried leguminous vegetables, onions, pomegranates, walnuts, prunes, plums, cashew, watermelons, pears and peaches. Since the land route via Pakistan has been closed, import from Afghanistan has almost stopped, trade sources said.

Published on June 15, 2025