Why is Afghanistan Reducing Air Cargo Tariffs to Enhance Trade with India?
Synopsis
Key Takeaways
- Ariana Afghan Airlines has announced a significant cargo tariff reduction.
- New rates are aimed at boosting trade with India.
- Afghanistan's export value has increased recently.
- Key products include fresh fruits and saffron.
- This move could help regain market share in international markets.
New Delhi, Nov 17 (NationPress) Following the Taliban's directive for the Afghan business sector to explore alternative trade routes due to the recent closure of its unstable border with Pakistan amid escalating tensions, Ariana Afghan Airlines has made a significant announcement regarding a reduction in cargo tariffs to and from India.
This strategic move coincides with reports from Kabul indicating that the country's total export value surged to over 274 million dollars during the September-October period, a notable increase from approximately 230 million dollars in the prior August-September timeframe.
Historically, most Afghan products have been exported to Turkiye, Pakistan, and the United Arab Emirates. With Afghanistan lacking a direct land route to India, trade through Pakistan has often been complicated by numerous bureaucratic and regional hurdles.
“Prior to the closure of the Pakistan border, Ariana was charging $2 per kg for cargo shipments between Delhi and Kabul. Now, the airline has been directed to lower the rate to 80 cents per kg from Delhi to Kabul and $1 per kg from Kabul to Delhi,” explained Bakht Rahman Sharafat, head of Ariana Afghan Airlines, in a statement to Tolo News.
Afghan exports, including fresh and dried fruits, saffron, carpets, and other goods, will now be transported to Indian markets at reduced costs and in shorter timeframes, as reported.
This new tariff structure is anticipated to invigorate Afghanistan’s trade sector during a crucial time for local exporters, according to Ariana News. The tariff adjustment, enacted under a directive from the Economic Deputy of the Prime Minister's Office, is likely to favor key export products due to enhanced transportation efficiency and lowered expenses. These products encompass fresh and dried fruits, saffron, carpets, and gemstones, among others.
The report emphasizes that by lowering cargo rates, Ariana Afghan Airlines aims to alleviate logistical burdens on Afghan businesses and enhance the reliability of export channels. Trade experts have suggested that this initiative could enable Afghanistan to reclaim market share in pivotal destinations like India, the Gulf states, and parts of Europe, where demand for Afghan agricultural goods and textiles remains high.
The reduction in tariffs also highlights Ariana's broader commitment to supporting national economic goals. “As one of the few carriers capable of connecting Afghanistan to regional hubs, the airline's pricing reforms position it as a crucial player in the country's efforts to broaden export volumes and attract new trade partners,” the report stated.
Meanwhile, buoyed by encouraging export statistics, the Afghanistan Chamber of Agriculture and Livestock has reiterated the importance of boosting investment in the processing of domestic products to further enhance export capabilities.
Waseem Safi, the chamber's executive director, was quoted by Tolo News stating, “We must elevate our exports, not only to neighboring countries but also to markets in Europe and the U.S.. From the outset, products should be prepared for export adhering to quality standards.”
Previous reports indicated that the Afghanistan Chamber of Commerce and Investment has launched significant initiatives to promote the country’s agricultural exports.
According to statements from the Ministry of Industry and Commerce, Afghanistan currently exports 20 major products annually to neighboring, regional, and international markets. These products include cotton, dried figs, raisins, asafoetida and its seeds, coal, fresh and dried onions, tomatoes, apples, pistachios, almonds, pomegranates, saffron, cumin, grapes, mineral stones, lead, non-alcoholic beverages, energy drinks, and fruit juices.