Nankhatai is believed to have originated in Surat in the 16th century, the time when Dutch and Indians were the important spice traders. A Dutch couple set up a bakery in Surat to meet the needs of local Dutch residents. When the Dutch left India, they handed over the bakery to an Iranian.[5] The bakery biscuits were disliked by the locals.[6] To save his business he started selling dried bread at low prices.