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
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