Taliban allegedly halt Afghanistan’s exports to India through Pakistan in August 2021.
Context
In August 2021, the head of India’s Federation of Indian Export Organisation (FIEO), Anjay Sahai, stated that the incoming Taliban government in Afghanistan was preventing all trade with India through the Pakistan corridor. Talking to Indian media, Sahai said that “[w]e keep a close watch on developments in Afghanistan. Imports from there 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”. Sahai added that “[s]ome of the goods are exported from international north-south transport corridor route which is fine now. Some of the goods go through Dubai route also which is working.”
The context to this alleged measure is the uncertainty caused by the end of the US-backed government (which had close relations with New Delhi) and return to power of the Taliban in August 2021 – which caused uncertainty in relations between Afghanistan and India. India closed its embassy and evacuated diplomats from Kabul on August 17, 2021.
Impact
In the year prior to this action, 2020-21, India imported around US$509 million of goods from Afghanistan, and exported around US$825 million in return. According to reporting, prior to this action approximately 85% of the dry fruits (anjeer, apricot, green/black raisins, figs and aromatic asafoetida) consumed in India are sourced from Afghanistan, together with nuts including almonds and walnuts, and the majority of piquant spice imports. In August 2021, dry fruit prices in India as much as tripled within a week in response to the Taliban’s action. According to one report, in the Indian city of Jammu
“[p]istachio costs have risen by Rs 600 per kg, while those of Afghan almonds and raisins have increased by Rs 350 per kg. The prices of figs have jumped by Rs 400.”
Responses
i) Indian government and industry responses.
The head of Indian export firm Quadra Akos LLP, Indra Pal Singh, told press that, as a result of these measures, “I don’t think there will be any business coming in from Afghanistan for the next six months or one year. I am staring at losses worth Rs 15 crore every month”. At the same time, a trader at a major Indian dry fruit market told press that “[t]he situation is volatile in Afghanistan and the dry fruit market has been badly hit. We are now looking at other options to source dry fruits from. The prices have doubled and tripled and, with the festive season around the corner, we are hoping for the trade routes to open up soon. Otherwise, this situation will impact the pocket of the common man severely.” A further trader told Indian media that “[w]e are already seeing an impact on prices. It is impacting the consumer, prices have steadily risen over the past few days. This is the harvesting season for many dry fruits but because the supply chain has been throttled, we don’t expect fresh stock to arrive anytime soon”.
(ii) Afghanistan government and industry responses
On September 1, 2021, it was reported that, at the request of the Taliban, official contact had been made between the Indian and new Taliban-led governments, through their representative offices in Qatar. Consequently, trade appears to have stabilised. In a video posted online in late August, 2021, senior Taliban leader Sher Mohammed Abbas Stanekzai called for smooth relations with New Delhi, saying that “India is very important for this subcontinent. We want to continue our cultural, economic and trade ties with India like in the past,” and adding that “[t]rade with India through Pakistan is very important for us. With India, trade through air corridors will also remain open.”
Status
India has recognised and actively engaged with the new Taliban government. In March 2024 Pakistan’s Defense Minister Khawaja Asif publicly floated the possibility of Pakistan closing the India-Afghanistan trade corridor that runs through Pakistan, in response to alleged anti-Pakistan terrorist operations being tolerated in Afghanistan’s borderlands. Asif told media ““If Afghanistan treats us like an enemy, then why should we give them a trade corridor?”
7. Key takeaways?
It is unclear from English language reporting is this is an example of WT, or rather just the uncertainty produced through conflict and regime change in Kabul. Also, it is notable that Pakistan has allowed Afghanistan to export to India through its territory, but has reportedly never allowed Indian exports to Afghanistan to pass through its territory. Is this a kind of structural, permanent WT?
Reference list
ANI. 2021. “Afghanistan: Taliban stopped exports, imports from India, says FIEO DG.” Business Standard. August 18. Available at: https://www.business-standard.com/article/news-ani/taliban-stop-exports-imports-from-india-121081801275_1.html
Bhat, S. 2021. “Afghanistan crisis hits Jammu’s dry fruit industry, prices skyrocket.” India Today. August 19. Available at: https://www.indiatoday.in/india/story/afghanistan-crisis-hits-jammu-dry-fruit-industry-prices-skyrocket-1842830-2021-08-19
Dawi, A. 2024. “US Unfazed as India Engages Taliban.” VOA. March 28. Available at:
Frayer, L. 2024. “With The U.S. Exit From Afghanistan, India Fears An Increasingly Hostile Region.” NPR. August 27. Available at: https://www.npr.org/2021/08/27/ 1031613191/india-taliban-afghanistan-us-exit-china-power
Hindustan Times. 2021. “Want to continue our political, trade ties with India: Taliban leader Stanekzai.” Hindustan Times. August 29. Available at:
Paliwal, A. 2021a. “Taliban ban on exports proves tough nut to crack for Indian traders as dry fruit prices soar.” India Today. August 20. Available at: https://www.indiatoday.in/ india/story/afghanistan-dry-fruit-prices-soar-indian-traders-affected-1843043-2021-08-20
Paliwal, A. 2021b. “Afghanistan crisis: Indian trade worth $1.5 billion stops abruptly as Afghans stare at bleak future.” India Today. August 24. Available at: https://www.indiatoday.in/india/story/afghanistan-crisis-indian-bilateral-trade-stops-abruptly-afghans-bleak-future-1844493-2021-08-24
Vaid, D. 2021. “India holds first official Taliban talks.” DW. January 9. Available at:
Zaman, S. 2024. “We Don’t Want Armed Conflict With Afghanistan, Pakistani Defense Minister Tells VOA.” VOA. March 20. Available at: https://www.voanews.com/ a/7535439.html