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18/08/2021 12:31pm

Afghanistan crisis to impact bilateral trade: CAIT

image Afghanistan crisis to impact bilateral trade: CAIT

New Delhi, Aug 18 (KNN) The bilateral trade between Kabul and India will be impacted badly since the future is uncertain as Taliban take over Afghanistan, said Confederation of All India Traders (CAIT).

Afghan exports to India include dried raisin, walnut, almond, fig, pine nut, pistachios, dried apricot and fresh fruits such as apricot, cherry, watermelon, and medicinal herbs. On the other hand, India's exports to Afghanistan include tea, coffee, pepper and cotton, toys, footwear and various other consumable items- said B C Bhartia, National President & Secretary General Praveen Khandelwal, (CAIT).

According to traders' body, the bilateral trade between India & Afghanistan was 1.4 billion dollars in 2020-21 as against 1.52 billion dollars in 2019-20. Exports from India were 826 million dollars and imports were aggregated at 510 million dollars in 2020-21.

Both Bhartia and Khandelwal said that prices in the markets may go up due to the uncertainty of the political situation in Afghanistan. Currently the imports and exports shipments are stranded which may cause heavy losses to the traders.

They advised domestic exporters to remain alert and gave a sharp eye on the developments. Huge amounts of payments are likely to be blocked which will put traders in a vulnerable situation.

''The Government must take cognisance of it and help the traders in the event of facing a financial crisis,'' they added.

They also stated there would be a complete standstill in the trade for a certain time, as the situation is out of control in Afghanistan.

"It is a landlocked country and the air route is the main medium of exports and that has been disrupted. Trade will resume only after the uncertainty will get down, in most likelihood, the private players will have to deal through third countries to export to Afghanistan but it all depends on how the situation takes place,'' they said.

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