The Export promotion and market access for agriculture and food products in major

global markets

Islamic Republic of AfghanistanMinistry of Agriculture, Irrigation & Livestock

Abdul Jalil Zahid Planning and Program Coordination section Head

Private Sector Development Directorate MAIL

Introduction

• 36% population living under poverty line;• 76% population living in rural eras; • 78% of the population’s livelihoods depend on agriculture;• 70% of Afghans are food insecure;• 55% Afghans are directly involved in agriculture;• Agriculture makes 31.4% of the GDP;• Cereal crops make 80% of our agricultural economy; and• 20% population increase is projected in the next 10 years.

Afghanistan Political Map

Afghanistan  Area :    652,864Capital : KabulPopulation : 34.66 million 2016 / world BankCurrency: Afghan AfghaniOfficial languages : Pashto, Dari

10/17/11

Export promotion and market access

Strengthening and establishing of Quarantine at the boarders 

Agriculture Development Framework

Agriculture Master Plan2005-2006

Agriculture & Rural Development Sector Strategy (ANDS)2007-2008

Kabul Conference (ARD Cluster Document)2010

National Priority Programs (NPPs)2013-2015

National Agriculture Development Framework (NADF)2009

National Comprehensive Agriculture Development Priority Program2016-2020

M1

Slide 5

M1 Moh.HanifSufizada, 06-Dec-16

• grapes• apples• apricot• wheat• corn• walnut

Production Center Region(For Export)

• Almond• Apricot• Apples• Figs• Melon• watermelon• Wheat• Rice• Cumin

Production; Northern Region(For Export )

• Pomegranates• Grapes• Pine nuts• walnuts• Wheat• Watermelon

Production; Southern Region(For Export )

• Vegetables• Orange• Olives• Pine nuts• Walnuts• Rice

Production; Eastern Region(For Export )

• Saffron • Pistachio • Grapes • Wheat

Production; Western Region(For Export )

2016 ‐ Composition of Afghan Exports 

Fruits & Nuts 35% 

Raisins 16%

Oil seeds13% 

Vegetables 13%

Carpets 6%

Saffron 5%

Coal 2% 

Cereals and grains 2% 

Yarn 2% Hides & Skins 2% Cotton 

1%Other 3%

2016 Fresh Fruit Exports (24 billion Afs/390 mln USD)

Grapes 63%

Watermelons and melons

8% 

Apples 9%

Apricots 10%

Pomegranates        10%

2016 Fresh Fruit Exports by Country 

India 43% 

Pakistan 37%

Russia 4%Iraq 3%Iran 3%UAE 2% 

Kazakhstan 2%

Other 6%

2016 Exports of Dried Fruits and Nuts (10.1 Billion Afs/164 mln USD)

Almonds, Walnuts 18% 

Dried Apricots  22%

Pistachios 10%

Raisins 42%

Other Dried Fruits8%

2016 Export of Dried Fruits and Nuts by Country 

Pakistan 8%

India 62% UAE 3%

Kazakhstan 1%

Iraq 5%

Russia 6%

Turkey 6%

China 1%

Iran 2% Other 6%

Pakistan India UAE Kazakhstan Iraq Russia Turkey China Iran Other

Dry Fruit in Afghanistan

2016 Export of Afghan Saffron (960 mln Afs/ 16 mln USD) 

UAE40%

India32%

Pakistan25%

Other3%

Saffron production in Afghanistan 

Transportation Mode of Afghan Export (mln USD)

 ‐

 50.0

 100.0

 150.0

 200.0

 250.0

 300.0

 350.0

 400.0

 450.0

 500.0

2010 2011 2012 2013 2014 2015

Other (mln.USD)

Via KIA (Mln USD)

Air Shipment via HKIA by Destination Country 

India82%

EU…

Turkey3%

UAE2%

China2% USA

1%Other2%

Structure of exports by country

India47%

Pakistan39%

Iran4%

UAE2%

Iraq2%

Other6%

Structure of exports by country

In 2016 exports of Afghanistan increased by more than 40% mostly due to increase of exports to India and Pakistan.

Pakistan and India are largest importers of Afghanistan products together accounting more than 80% of total Afghanistan exports.

Exports to Iran, Iraq and UAE were not growing in 2016. China, Turkey and Russia are very important market for Afghanistan exports

Exports to India is growing for the last 5 years, especially in spices and resins. Total export to India in 2016 has doubled from 9.5 billion to almost 20 billion Afs.

2011 2012 2013 2014 2015 2016

Imports 7,574 7,256 6,452 6,405 6,844 6,356

Exports 205.6 226.2 321.2 461 456 604

Trade Turnover 7,780 7,482 6,773 6,866 7,300 6,960

Trade Balance (7,369) (7,030) (6,130) (5,944) (6,388) (5,752)

Summary on trade of Afghanistan (mln USD)

GDP Structure (in mln Afs)

 ‐

 200,000

 400,000

 600,000

 800,000

 1,000,000

 1,200,000

 1,400,000

 1,600,000

2010 2011 2012 2013 2014 2015 2016

GDP Structure (in mln Afs)

Agriculture Industry Services

Exports and A.T.R

• Exports consist mainly of fruit, nuts, vegetables, cotton, carpets and coal. Exports are growing in the last three years with range of about 20% annually.

• Average Tariff Rate: 6.5% Including: Agricultural goods 7.3%; Other ‐ 5.9% 

Suggested Intervention in Short Term

• Negotiate a good rate for Air Cargo for next two years for India and UAE

• Build trade capacity of Private Sector, MOCI, MAIL, EPAA and other institutions

• Afghan pavilion in major trade shows• Provide assistance in packing, sorting and grading• Provide credit to exporters• Promote Afghanistan as a brand

Afghanistan‐ Air Cargo  

• From Afghanistan Kabul international  airport  to India  ( 18/Jun/2017) 60 mt dry fruits  and Medicinal Plant 

• From Afghanistan Qandahar international airport  to India (20/ jun/2017) 40 mt dry fruits and Medicinal Plant  

Challenges in Promoting Afghan Exports

• Lack of Institutional mechanism

• Lack of availability of reefer containers• Lack of pack houses• Lack of available credit at international rateQuality certification & SPS measures• GAP, HACCP, ISO 

• Absence of certifying body• High transaction cost

COCLUSION

• 76% population living in rural eras and 55% Afghans are directly involved in agriculture. From 2016-2020 National Comprehensive Agriculture Development Priority Program

• Afghanistan‐ Air Cargo ( Afghanistan and India )• Exports are growing in the last three years with range of about 20% annually.

• Challenges in Promoting Afghan Exports• Lack of Institutional mechanism and High transaction cost• In 2016 exports of Afghanistan increased by more than 40%

mostly due to increase of exports to India and Pakistan.

Reference 

• MAIL ( Ministry of Agriculture Irrigation and livestock )• MOCI ( Ministry of Commerce and Industries)• EPAA ( Export, Promotion Agency of Afghanistan)

Questions