Amid India-Pakistan conflict, dry fruit business at Old Delhi's Khari Baoli market takes a hit

Indian Express

20-05-2025

Following a major escalation in tension between India and Pakistan earlier this month, in the aftermath of the Pahalgam terror attack, traders at one of India's oldest markets, Khari Baoli in Old Delhi — famous for its dry fruits and spices — have been left in the lurch.
Their long-standing land trade route used to import dry fruits from Afghanistan via Pakistan has been cut off, which has sent the prices of dry fruits and spices in the market soaring. 'Earlier, dry fruits from Afghanistan used to reach us in about 9-10 days by road through Pakistan, at a cost of just Rs 20 to 40 per kg depending on the bulk size…,' said Rajan Bhargava, president of the Khari Baoli Traders' Association.
Pakistan had suspended trade with India, including to and from any third country through its territory, on April 24 in response to the restrictions imposed by India following the April 22 terror attack. India also shut down the Integrated Check Post at the Attari-Wagah border, effectively putting a halt to cross-border trade worth Rs 3,886 crore with Pakistan. India currently carries out trade with Afghanistan only via the Attari-Wagah border.
'Now, with the land route shut, we are left with two choices — airlifting the cargo at a minimum cost of Rs 200 per kg, or using a much longer alternative road route,' added Bhargava.
But airlifting might not be an option either. On April 30, India barred Pakistani flights from its airspace. In retaliation, Pakistan followed suit, closing its own airspace to Indian carriers.
Despite the sudden strain, Chandni Chowk BJP MP Praveen Khandelwal, who is also the secretary general of the Confederation of All India Traders, said the price inflation is temporary.
'To the best of my knowledge, there is no inflation, but even if there is one, it will be a temporary one — stocks are limited and once these stocks are exhausted, traders will start looking for alternatives. If the supply chain is hurt, then we will be pushed to increase our own indigenous production to meet demands,' he told The Indian Express.
Voices from the market
The term 'Khari Baoli' comes from the Hindi words khari (salty) and baoli (stepwell), referring to the now-dry stepwell that once existed in the area and possibly stored saline water. Over time, as the water dried up, traders began setting up shops around the well.
Today, the market that deals in herbs, roots, nuts, seeds, and spices is a jumble of crowded lanes with the aroma of exotic spices in the air. It is home to some of India's oldest importers, many of whom have run family-owned businesses for generations.
The market is also referred to as 'Mini Kabul' as more than 85% of the dry fruits are sourced from Afghanistan, where Asia's largest dry fruit mandi (market) is located.
With the road link to Afghanistan now severed, the supply of staples such as gurbandi badam (almonds), munakka (raisins), and sundekhani kishmish (raisins) has been deeply impacted. Afghan-origin gurbandi (or choti giri) almonds, once sold at Rs 700 per kg, are now priced at Rs 850.
Sundekhani kishmish has jumped from Rs 400 to Rs 600 per kg. Figs have seen a Rs 150 spike per kg, and munakka prices have risen by Rs 60–70.
Traders said they are trying to secure alternate suppliers, but in the short term, this has added to the hoarding of supplies, leading to these price inflations.
'Many traders started inflating costs the moment they heard of the conflict… The problem is that when the cost of a few items increases, the cost of many others — even those not affected by the supply chain issues — also rises,' said Sanjay Khanna, who is a second-generation dry fruit seller.
Bhargava said that since a lot of these imports are speciality items, looking for alternate sources is not an option.
'There are no alternate sources… the only option is to re-route and import these items. For the Afghan items, supplies are now being rerouted and delivered by crossing the UAE. The first shipment since the trade ban is currently in progress; it would cost us approximately Rs 30 more per kg,' he added.
Even items not sourced from Afghanistan have been affected.
'The price rise is now hitting all dry fruits, irrespective of where they're being imported from… California almonds and Iranian mamra have also gone up by around Rs 230 per kg,' said Jayant Sharma, a third-generation wholesaler.
Meanwhile, cross-border trade in a limited set of items between India and Pakistan — such as chuara (dry dates), pink salt, hing, and certain herbs — has also come to a halt.
Adding to the volatility is a growing call for a trade boycott of Turkey, after reports surfaced suggesting 'Turkish support' for Pakistan. Turkey is a key exporter of khas khas (poppy seeds), which is widely used in Indian cooking and traditional medicine, and hazelnuts.
Hazelnuts, earlier priced at Rs 1,300 per kg, are now being sold for Rs 1,500. The price of khas khas has increased by Rs 250, taking it from Rs 1,300 to Rs 1,550 per kg.
Bhargava said, 'There is no alternate route when it comes to Turkish imports because those items were coming via a sea route.'
BJP MP Khandelwal remained optimistic. 'These are not proprietary items. Keeping in mind the demand, the production always steps up. These are temporary things. Suppose this becomes permanent. By that time, importers will find alternate countries. When we get into a business, we don't look for alternatives, but in crisis, we do,' he told The Indian Express.