Licorice Root from Afghanistan: Access to the Global Market

Licorice Root

Pakistan

Published Oct 10, 2019

Afghanistan is one of the major exporting countries of licorice roots. Starting in 2019, the Chabahar Port has been opened for Afghan exporters and they will be now able to send their licorice roots across the globe.

Afghanistan is one of the major exporting countries of licorice roots. The root is not cultivated but instead, is collected in the wild. As a result, it is difficult to estimate the exact supply and trading volume at a national level. The production and quality of licorice roots in 2019 have improved compared last season due to favorable weather conditions. There has been sufficient rainfall so far this year and this has increased the yield of the root and led to higher moisture contents in the root, states Abdul Qayyum Baloch from Nasimnajwa.

Licorice root is mainly used to make herbal medicines and sweets. The root is also used in the cosmetic industry, which is an industry that has seen huge growth in recent years. The demand for the root is currently high in India as the country’s medicinal industry is expanding. Nasimnajwa exported around 10K tons of licorice root in 2018, and the company expects to increase its export volume in 2019.

The price of the Afghan licorice root ranges from 1,200 USD to 1,800 USD per ton, depending on quality: Premium, A, B, and C. The quality grades are given to roots based on size, shape, and moisture. Higher moisture content will allow the root to produce a higher percentage of licorice extract.

Previously, Afghan licorice root exporters sold the roots to nearby importers in India, Pakistan, and Turkey, who would re-export the products to end customers in the US, the UK, and other Europian countries. However, starting in 2019, the Chabahar Port has been opened for Afghan exporters and they will be now able to send their shipments across the globe. As a result, exporters such as Nasimnajwa are sending their roots directly to their end customers in the US and the UK. Since the end customers can receive the product directly from Afghanistan without having to go through re-exporters, the purchase prices will be lower for the end customers. This presents an opportunity for Afghan licorice exporters to increase their market share in countries other than India, Pakistan, and Turkey.