Agricultural Exports to Afghanistan Face Likely Decline

16-Jun-2025 10:50 AM

Although the Government of India has not formally recognized the Taliban-led administration in Afghanistan, trade between the two countries has continued. However, exports of agricultural products from India to Afghanistan declined by around 20 percent in the financial year 2024–25, falling to $82.6 million compared to the previous year. A further decline is expected in the 2025–26 financial year.

India primarily exports oil meal, tobacco, spices, sugar, and processed fruits including juices to Afghanistan. While the export of oil meal increased to $27.37 million and tobacco products rose to $15.91 million in 2024–25, the export of spices dropped to $11.92 million, sugar fell to $8.69 million, and processed fruits and juices declined to $5.51 million.

Trade analysts note that Afghanistan has traditionally been a reliable, albeit small, market for Indian sugar exports. However, logistical challenges have recently intensified. The closure of the Karachi port and the Wagah-Attari border route due to tensions between India and Pakistan has disrupted trade. An alternative shipment route via Iran’s Bandar Abbas Port had been considered, but recent Israeli airstrikes have led to the port's closure, removing this crucial export pathway for Indian goods.

Until the geopolitical situation stabilizes, exports of Indian agricultural products to both Afghanistan and Iran are expected to remain uncertain or decline further.

According to available data, a total of 5,16,782 tonnes of agricultural products were exported from India up to 31 May 2025 in the current marketing season, of which 72,833 tonnes were sent to Afghanistan.