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Afghanistan-India border closure may spike dry fruit prices, impacting supply and quality, leading to alternative import routes and cost escalation.
| Photo Credit:
REUTERS
The coming festival season may see the dry fruit prices shoot up in the domestic market. The closure of borders amid the mounting tension with neighbouring Pakistan will likely disrupt supplies from Afghanistan.
Afghanistan is one of the largest nuts and dry fruit exporters to India with an estimated 20,000 tonnes annually.
The current trade restrictions between the two countries and closing down of the borders is likely to impact the flow of products such as dried apricots, almonds, black and green raisins, pistachios, walnuts, increasingly imported by India to meet the rising consumption.
Via Dubai
The emerging situation could compel India to seek alternative import avenues, which will push up the prices in the domestic market during the peak season, said J. Rajmohan Pillai of Beta Group, which owns the brand NutKing.
Already some of the products to India including those imported from the US are coming via Dubai and there is a chance of cost escalation if the trade relations between India and Pakistan further worsen, he said.
A leading dried fruit trader in New Delhi, who did not wish to be identified, said the closure of the Atari border will adversely affect the transit of products from Afghanistan as reportedly around 30 trucks are waiting on the other side of the border, seeking permission to enter India.
Currently, the domestic market has enough stock to meet the demand for the wedding season in North India from May. The demand is expected to surge from the current slowdown due to fag end of the season and with the commencement of the new crop by July-August before the festivals.
Limited cargo flights
Supply delay compounded by the limited availability of cargo flights from Kabul may lead to deterioration of quality of dry fruits with high medicinal value such as figs and raisins, he said.
Bola Rahul Kamath, Director of Bolas Agro Pvt Ltd, Mangalore, said that prices of imported dried fruit have already increased by 10-15 per cent with the closure of borders. The only option now for Afghan dried fruits to reach India is through Chabahar Port in Iran, with a long transit journey of nearly a month compared with 3-4 days by road, which, together with the scarcity of refrigerated containers, will cause damage.
The pricing depends on quality, Kamath said. For instance, Mamra Almonds, unique to Afghanistan, are priced in the range between ₹2000-2500 per kg, Pishori Pistachio at ₹3000-3200; Anjeer dried figs at ₹600-1400 per kg, Black Raisins at ₹200-350.
The trade from Afghanistan is presently duty free because of SAARC rules and it is not clear whether such exemptions are granted to consignments diverted through Iran., he said.
Published on April 28, 2025
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