15% spike likely in dry fruit imports from Afghanistan on easier trade flow

Dry fruits from Afghanistan are set to reach the Indian markets in much greater numbers soon, spurred by greater demand and easier trade flow.

Last week, major Afghan exporters signed more than $67 million worth of contracts at a trade mission mounted by the Afghan Chamber of Commerce and Industries and the Ministry of Agriculture, Irrigation and Livestock from Afghanistan.

"In total, $27.3 million in confirmed deals were signed (a total of 5,200 tonnes). The three leading products comprised raisins (37.1 per cent), saffron (17.5 per cent) and apples (7.3 per cent). Other products included grapes, apricots, pomegranates, dried fruits and fruit juices. Potential deals totaled $39.4 million. Potential deals totaled $39.4 million." according to the Afghanistan Chamber of Commerce and Industry.

The combined deals that have been inked, has the potential to give a boost of 15 per cent to India's current imports from Afghanistan, which stands at $ 433 million.
 

Kabul expects to ramp up trade with India through two new direct air cargo routes opened last year, linking Delhi and Mumbai to Kabul. Pushed by Afghan President Ashraf Ghani, the country implemented air cargo incentives that led to the first direct air shipments of Afghan produce into the Indian airports of New Delhi and Mumbai.

Since then, more than 100 flights have been conducted between the two countries that managed to transport 2,500 tonnes of goods, diplomatic sources said.

On the other hand, moving beyond the traditional imports of grapes and raisins, Indian importers are eyeing the country as alternative source of produce for other fruits such as apples as well.

"With the new air corridor between India and Afghanistan, we need Afghan products in major volumes. We will reduce imports from other countries and create space for Afghan products in our auction areas." Sudhir Suri, chairman and joint managing director of Suri AgroFresh said.

Industry queries for Afghan apples have also spiked. Indian importers have been put in a spot after the government decided to impose higher import duties beginning August 4 on apple shipments from the United States, which is the largest source of the red fruit for India. 

Fruit trade expected to continue fast growth

Despite years of war and civil strife, the landlocked nation continues to be the largest source of dry fruits for India, a segment that has witnessed rapid growth over the past few years.

Import of agricultural and related items makes up for 99 per cent of all imports from the country to India. "During the last three years Kabul exported about 10,200 tonnes in volume to India. In last one year alone, it went up to 2,500 tonnes and this year we expect it to reach 5,000 tonnes," Afghanistan's Ambassador to India Sahida Mohammad Abdali told PTI last week.