Afghanistan Seeks Direct Basmati Deals with India

Indian and Afghan traders are scheduled to convene next month to finalize arrangements for expanding direct Basmati rice trade, following preliminary discussions facilitated by the PHD Chamber of Commerce and Industry.

Afghanistan, a significant consumer of Basmati rice, is actively diversifying its sourcing strategy, exploring direct imports from India as an alternative to its traditional reliance on Pakistan, especially amidst current bilateral tensions.

Officials have indicated that direct sourcing from India could lead to more cost-effective and dependable rice supplies for Afghanistan. Discussions have included potential delivery routes, such as through Iran's Bandar Abbas port.

While direct trade discussions are progressing, the absence of formal diplomatic relations between India and the Taliban-led administration presents a key challenge, introducing uncertainties for exporters regarding payment assurance and travel to Afghanistan.

India's Basmati exports to Afghanistan have historically been modest, with the highest volume of 19,440 tonnes recorded in 2020-21. In April 2026, exports were 979 tonnes.

This strategic move by India aims to establish a stronger presence in the Afghan market, which has been predominantly supplied by Pakistan. India's overall Basmati exports reached 6.52 million tonnes in 2025-26, though export earnings saw a decline due to lower prices.