Taliban violence hurts India trade

Afghan policemen stand guard next to Indian and Afghan national flags at a checkpoint in Kabul city on May 12, 2011. [Reuters]

The Taliban have stopped imports and exports with India after they entered and took over Kabul, the Times of India has reported.

The report published on Wednesday said the Taliban had stopped cargo movement through Pakistan routes.

Federation of Indian Export Organisation director-general Dr Ajay Sahai is reported to have said India has had a long trade relationship with Afghanistan.

"...our exports of Afghanistan are worth around $835 million for 2021. We imported goods worth around $510 million. But besides the trade, we have a sizeable investment in Afghanistan. We have invested around $3 billion in Afghanistan and there are 400-odd projects in Afghanistan some of which are currently going on," the Times of India quoted Sahai.

On Thursday last week, Reuters reported that India's trade with Afghanistan dried up as borders and banks have closed since the Taliban took over the country, but industry officials said that the disruption was temporary and that it would be business as usual soon.

New Delhi is one of the leading suppliers of essential commodities to Afghanistan, which exports mainly dry fruits to India.

Shipments between the two countries were delayed or disrupted after Taliban insurgents started making military advances earlier this month, leading to the fall of the capital Kabul on Sunday, industry officials said.

"There is a temporary glitch in trade as Afghanistan is witnessing a transition of power. But within a few days trade will restart," said Rahil Shaikh, managing director of Mumbai-based MEIR Commodities, which exports sugar to Afghanistan.

India's exports to Afghanistan came to $826 million in the financial year that ended on March 31, consisting mainly of sugar, cereals, tea, spices, pharmaceutical and textile products.

In the same year, New Delhi's imports from Kabul came to $509 million, consisting mainly of figs, raisins and apples.

Afghanistan has been the second-biggest buyer of Indian sugar in the 2020/21 marketing year ending on Sept. 30, purchasing a record 624,000 tonnes, according to the All India Sugar Trade Association.

Indian shipments for Afghanistan usually land at Pakistan's Karachi port and from there are moved to Afghanistan through road.

The Federation of Indian Export Organisation told Reuters partner ANI on Thursday that the Taliban have stopped all imports and exports from India through transit routes of Pakistan.

Taliban spokesperson Zabihullah Mujahid denied this in a Tweet saying "The Islamic Emirate wants better diplomatic and trade relations with all countries."