News Capsule: Pakistan's Loss Could Be India's Gain as Basmati Exports to Afghanistan May Rise

29-Jun-2026 09:10 AM

News Capsule: Pakistan's Loss Could Be India's Gain as Basmati Exports to Afghanistan May Rise
★ Amid growing tensions between Pakistan and Afghanistan, India is emerging as a potential alternative supplier of Basmati rice. Following preliminary discussions between officials of both countries, Indian exporters and Afghan importers are expected to meet in July to finalise trade modalities, including logistics, payment mechanisms and supply arrangements.
★ Afghanistan consumes around 0.5 million tonnes of Basmati rice annually and has traditionally depended on Pakistan due to their shared land border. However, the current geopolitical situation has prompted Kabul to explore direct imports from India, which could also reduce costs by eliminating indirect shipments through Dubai and Iran.
★ India exported 6.52 million tonnes of Basmati rice in 2025-26, while exports to Afghanistan stood at 979 tonnes in April 2026. If a direct trade mechanism is established, India could significantly expand its presence in a market that has long been dominated by Pakistani suppliers.