‘Sugar’ amongst top affected products imported by Afghanistan

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Taliban’s takeover of Afghanistan is said to leave an adverse impact on the bilateral trade relations with India. According to reports citing Dr. Ajay Sahai, Director General (DG) of Federation of Indian Export Organisation (FIEO), the Taliban has stopped the movement of cargo through the transit routes of Pakistan, thereby stopping imports and exports in the country. India stands as one of the largest partners of Afghanistan, exports worth $835 million have taken place and goods worth $510 Million have been imported in 2021. Besides trade, India has invested around $3 billion in Afghanistan and there are 400-odd projects in Afghanistan amongst some currently going on.

Afghanistan’s top 10 import products account for more than 61% of the overall value of Afghani import shipments which includes sugar at around 3%. According to latest reports by the India’s Department of Food & Public Distribution, in 2021, approximately 60.01 LMT of sugar has been dispatched from sugar mills for export. Out of which more than 6 LMT has been exported to Afghanistan.

Speaking to ChiniMandi News, Mr. Adhir Jha – CEO, Indian Sugar Exim Corporation (ISEC), said, “India had maximised exporting white sugar to Afghanistan after the shortage of sugar in Pakistan due to sugar production falling below consumption levels. The situation is likely to remain affected for some time until we get to know of any positive developments.”

According to a Mumbai based exporter, “The market sentiments are hurt. India has so far exported 7.86 LMT of sugar to Afghanistan in 2020-21 by the end of July 2021. The sugar industry may have to look for some other buyers to channelise the quantity of sugar if the trade relations don’t jump back to normalcy. The entire proposition would be ruled out once we get to see under which country’s influence the Taliban rule gets going with.”

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