International Journal of Scientific Research and Management (IJSRM)

||Volume||06||Issue||10||Pages||EM-2018-750-755||2018||
Website: www.ijsrm.in ISSN (e): 2321-3418
Index Copernicus value (2015): 57.47, (2016):93.67, DOI: 10.18535/ijsrm/v6i10.em04

The contribution of Agriculture Sector in the Economy of Afghanistan

Ahmad Jawid MURADI1, Ismet Boz1
1: Ondokuz Mayıs University, Agricultural Faculty, Department of Agricultural Economics,
Samsun, Turkey.

Abstract:
The purpose of this study is to identify the contribution of agriculture to the Afghanistan economy by
examining the experience of 34 provinces as documented in commissioned case studies and various
secondary sources (CSO directory, FAO reports, government publications, USAID reports, NGO reports,
journals, and websites) for the period 2016 - 2017. Agriculture is the backbone of the Afghan economy,
the contributions of agriculture to the country's gross demotic product (GDP) is 23% in 2017, while the
labor force engaged in this sector is around 61.6%. The annual growth rate in Afghanistan is predictable
3.6%.Afghanistan produces organic fruits, nuts, grain, vegetables and livestock products including
cashmere, skin,wool, and a significant amount of these commodities is moving towards the export market.
Agriculturere presents about one-quarter of national GDP and is the second largest sector after services.
Over the 70 %of the population are poor living in rural areas, and agriculture plays a significant role in
their livelihoods.The most Afghan farms are very small, and their productivity is low over the years that
farmers produce to satisfy the food needs of their household, with limited agricultural production entering
commercial marketing channels and the trade account deficit overall. The GDP including opium was US$
20.3 billion with GDP per capita of US$ 697. The agricultural sector is entirely run by private enterprises,
including farmers, cooperatives, input suppliers, herders, agribusiness processors, and exporters.

Keywords: Importance, Agricultural, Economy, Contribution, GDP, Afghanistan.

1. Introduction 23 percent of total agricultural GDP [2].

The majority of the Afghan population lives in Agriculture has good growth potential and high
rural areas, where poverty and deprivation are the influence for reducing poverty and creating jobs
most severe. Since almost all rural households both on and off the farm.
depended directly or indirectly on agriculture and “The most people in the world are poor, so if we
given the sector's large contribution to the global knew the economy of poverty, we would know
economy, agriculture can be expected to be an much of the economics that matters. Most of the
essential element of growth and development [1]. world people poor depend on agriculture, so if we
The country has not yet met the criteria for a knew the economics of agriculture, we would know
successful the revolution of agricultural and much of the economy of poverty” [3].
production factor in agriculture lags far behind the Through the varied geography and topography, out
rest of the world. Afghanistan's economy has faced of 652,000 square kilometers of total land area,
widespread devastation over the last thirty years only an estimated 12 percent is arable, 3 percent of
due to war and political instability wiping out the the land is considered forest covered, 46 percent is
economic infrastructure and institutions across the under permanent pasture, and 39 percent is
country. The agriculture sector makes up mountainous, not usable for agriculture [4]. There
approximately one-second of GDP and is is cultivation plant by land face water and rainfall
vulnerable to wide fluctuations depending on also rainfed wheat essential for cereal production.
weather and policy actions of Afghanistan's Wheat is the primary crop for production of cereal.
neighbors. Despite representing one-second of the Also, wheat uses for consumption 89% comparison
economy, agriculture employs an estimated 60 too there grins. Fruits including watermelon,
percent of Afghans. The agriculture sector overall melon, apricot, pomegranate, and almond are
is very dependent on cereal and other annual field essential for exports [5].
crop production which accounts for an estimated
Ahmad Jawid MURADI, IJSRM Volume 06 Issue 10 October 2018 [www.ijsrm.in] EM-2018-750
To rapidly increase the rate of agricultural growth, security situation significantly limited field trips
rather than trying to drive the whole agrarian sector during the review period.
forward at the same time, it may be more sensible
to focus attention on a few "first movers:" priority 3. Agriculture Economics Growth
on imported products and export traditional crops,
and drive value chains for these hard for growth Afghanistan is an agricultural country with 80%
and creation job in the expectation that the rest of of the population lives in rural area. Most of the
the sector will follow. Such an approach is very Afghan economy's output comes from agriculture.
similar to that of the Asian Green Revolution, Agriculture is the most crucial sector of the
where a first thrust on the substitution of wheat and economy, as the majority of the population is
rice imports in high-potential irrigated areas has dependent on crops and has a long tradition in
led to significant growth in agricultural horticulture and livestock production, including for
employment and rural transformation [6]. The export. A major part of this production is wheat,
study shows that despite recent skepticism, and more generally cereals, produced for domestic
agricultural growth is still vital for most low- consumption. The agricultural value added is
income in Afghanistan. The ability of Afghan estimated at Afs 316510 million or about 23% of
farmers to find pathways out of poverty and to GDP in 2016-2017 respectively. Overall the
contribute actively to the growth process depends Agriculture sector has increased compared to last
on improving infrastructure and education, year by 12.4 percent [7]. The reason for this
distributing key technologies and inputs, and increase was due to enough rainfall in spring,
promoting producer and marketing organizations which affected agriculture production. Agricultural
that link small farmers to new market chains. The production in Afghanistan almost entirely depends
challenge is therefore to develop new institutional on melted snow and spring rains to provide water.
arrangements between the public and private The good weather contributed to high cereal
sectors that foster private sector development production, even in good years. Maximizing
without leaving smallholder farmers isolated growth in agriculture will require investing more in
during the transition [9]. the expansion of irrigated land; improving the
conveyance of irrigation water and the on-farm
2. The Methodology of the Review management of this water, and developing services
The main subjects covered by this study include a for generating knowledge and disseminating
general outlook of agricultural sector in technology. The agriculture sectors share in overall
Afghanistan, contribution to national income, job employment in Afghanistan is 60 %. The total
creation and well-being for rural populations, officially recorded exports from Afghanistan was
sectoral contribution to GDP, and present USD$ 482 million and imported $3.77B, resulting
situations of key subsectors (food supply source, in a negative trade balance of $3.29B, during the
livestock, and horticulture). It was aimed to last five years the exports of Afghanistan products
understand their structure, performance, and have decreased at an annualized rate of -15.486%,
potential for development. The data of the study from $ 531M in 2011 to $482M in 2016. The
collected from various secondary sources, (CSO, major export items were carpets and rugs (17% of
FAO reports, government publications, USAID the total export of the country), dried fruits 37%,
reports, NGOs reports, journals, and websites) for medicinal plants 6%, fresh fruits 5%, skin 2% and
the period of 2016 - 2017. Lack of sufficient time- other items 33%. Hence, dry fruits constitute an
series data on crop and livestock production, important export item from Afghanistan. The
domestic consumption, exports, and their major export country of Afghanistan is India
respective prices made the quantitative evaluation ($220M), Pakistan ($199M), Iran ($15.1M), Iraq
of the sector very difficult. There are serious gaps ($10.1M) and Turkey ($9.1M). Afghanistan's
in the data collected during the years of conflict, agricultural products earned a global reputation for
and many of the data available are of uncertain excellence, particularly almonds, pomegranates,
quality and contain noteworthy contradictions. The pistachios, raisins, and apricots. Afghanistan is
years of conflict saw a shortage of field-based now re-establishing its place on the international
studies on critical agricultural issues. Many market.
agricultural activities also failed or were disrupted
during the conflicts, leaving few successful models
that can be scaled up. Further, the deteriorating
Ahmad Jawid MURADI, IJSRM Volume 06 Issue 10 October 2018 [www.ijsrm.in] EM-2018-751
3.1 Contribution to National Income
The financial value of all the finished goods and Agriculture is the essential source of food
services produced within the borders of a country supply for all countries, whether they are
during a given period. Although GDP is generally underdeveloped, developing or even developed in
calculated on an annual basis, GDP includes all the world. Table 4 shows the quantity of cereals
private and public consumption, government crops production (tons), the total average cereals
outlays, investments, private stocks, paid crops production was 6.189 million metric tons in
construction costs and the foreign trade balance Afghanistan between 2013 -2017. In 2017, cereal
(exports are added, imports are subtracted). production for Afghanistan was 5.525 million
Simply put, GDP is a broad measurement of a metric tons. The deceleration in growth was
nation's overall economic activity (Anonymous, primarily driven by the decline of the agriculture
2017). In order to show economic condition in the sector. Wheat is a major crop for food. Every year
country, GDP for Afghanistan is compiled into two cultivated on irrigated and rainfed area the average
categories; GDP includes opium and GDP exclude wheat production in 2013-2017 was4.96 million
opium. GDP including opium was 1373275 tons. The average of rice production was 0.463
Million Afs) US$ 20.3 billion (with GDP per million tons which decreased in 2017 by 13.03%
capita of Afs 47030 equal to US$ 696. GDP compared to the previous year. This decrease in
excluding opium was (1333812 Million Afs) US$ production was due to a reduction in the area of
19.7 billion (with GDP per capita of Afs 45678 cultivation. The average production of barley was
equal to US$ 676. [8]. Table 1 shows the 0.448 million tons compared to last year decreased
agriculture contribution Gross Domestic Product by 25.09%, and maize production was 0.313
(GDP) in Afghanistan from 2013 – 2017, while million tons. The production of both rain-fed and
cereals crops contribution is 8.5%, Fruits 3.3 %, irrigated wheat, which account for almost 80
livestock 2.9 and others agriculture production is percent of Afghanistan's entire output of cereals,
8.4% in the year of 2017. Table 2 shows the fell, mainly due to low rainfall. By contrast, the
agriculture % GDP growth rate at the constant fruit output increased by around 7 percent. In 2017,
price from 2015 – 2017, whereas the GDP growth the production of cereals declined by an additional
rate in cereals crops is –4.7%, Fresh Fruits 32.1%, 2.1 percent, with the per hectare yield of wheat
livestock 0.2 and others agriculture production is falling by 8 percent due to crop diseases and pests.
6.3% in the year of 2017. Table 3 shows the Gross Table 5 shows the crop yield of agricultural
Domestic Product (GDP) Agriculture Activity in products (Kg/Ha), the total average wheat
Current Price 2015 -2017, as the agriculture production is 2067 Kg/Ha, rice 2646 Kg/Ha, barley
production is 316510 million Afs (Afghanistan 1442 Kg/Ha, maize 2229 Kg/Ha, potato 12894
currency) in 2017[14]. Kg/Ha, sugar beet 9184 Kg/Ha, sugar cane 16963
Kg/Ha and almond 1779 Kg/Ha in Afghanistan
3.2 Sectoral Contribution GDP
between 2015 -2017.
The agriculture sector in Afghanistan contributed
23% to the Gross Domestic Product (GDP), while 3.3.1 Livestock
industry contribution is 21.1%, Services 51.6% and The livestock sub-sector is another key
tax on imports 4.3% as shown in Figure 1[5]. component in Afghanistan’s economy; livestock
Figure 1. Sectoral Contribution GDP currently contributes about 15 percent of
agricultural GDP. Afghanistan exports some
livestock products mostly skins, wool, and
cashmere. Livestock Products such as wool, milk,
meat, skin, and fat are an important source of
income for the farmers and a good food source for
the farmer households. Based on the last three
years reports by the ministry of agriculture,
irrigation, and livestock, the average numbers of
animals are cattle’s 5.2 million, sheep 13.3 million,
goats 7.4 million, camel 0.17 million, horse 0.17
million, ass 1.4 million and chickens 11.9 million.
3.3 Food Supply Source
3.3.2 Horticulture
Ahmad Jawid MURADI, IJSRM Volume 06 Issue 10 October 2018 [www.ijsrm.in] EM-2018-752
 Horticulture subsector plays a vital role in Investment in research, extension and irrigation
providing livelihood to the farmers; horticulture infrastructure is key to transforming the
contributes 34 percent of agricultural GDP. The agricultural sector in Afghanistan. The role of the
major fruit varieties are apple, pomegranates, government is to improve research stations, which
apricots, mulberries, grapes, and almonds. Fruit play a significant role in the development of new
cultivation area was 181 thousand hectares. varieties to increase productivity, shelf life, and
However, orchards products are the major source marketability. The extension is the key to
of income for farmers in many areas of the country, disseminating new technology among farmers
and the majority of large and medium-sized through field days and demonstration programs.
orchards are exclusively for markets. According to Improving irrigation infrastructure and on-farm
the ministry of agriculture, irrigation, and water management will help farmers achieve self-
livestock, the fruit production in the year of 2017 sufficiency and productivity.
was 1.2 million tons, whereas production of
vegetables was 427.9 thousand tons, Potato and 4. References
onion are major vegetables they are specially used
for food in the country [12]. [1] Diao, X., Hazell, P. B., Resnick, D.,
&Thurlow, J. (2007). The role of
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to Inclusive Growth. Washington, DC:
4. Conclusion World Bank.
From the explanation of above conclude that the [7] World Bank, (2014).Islamic Republic of
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advanced countries and its role in the economic [8] The government of Afghanistan, Central
development of the least developed countries is the Statistics Organization (CSO). (2017).
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community, as well as industrialization and Research in Afghanistan.”Kabul: USAID.
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production. Assessment of the National Horticulture

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 and Livestock Project.” Kabul: Samuel Hall Afghanistan Ministry of Rural
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APPENDICES

Table 1. Agriculture Contribution as % of GDP

Sector 2013 2014 2015 2016 2017
Agriculture 25.4 24.7 24.1 21.8 23.0
1. Cereals 10.6 10.6 11.0 9.7 8.5
2. Fruits 2.4 2.1 2.6 2.5 3.3
3. Livestock 3.1 3.0 3.0 3.0 2.9
4. Others 9.3 9.1 7.5 6.6 8.4

Table 2.Agriculture % GDP Growth Rate at Constant Price

Sector 2017 2016 2015
Agriculture 12.4 -16.9 3.7
1. Cereals -4.7 -14.2 3.7
2. Fresh Fruits 32.1 7.2 18.9
3. Livestock 0.2 0.4 0.1
4. Others 6.3 -2.2 -14.9

Table 3: Gross Domestic Product in Agriculture Activity in Current Price Figures in Million Afs
Sector 2017 2016 2015
Agriculture 316510 274103 294038
1. 1. Cereals 116568 121693 134306
2. 2. Fruits 44654 31556 31822
3. 3. Livestock 40102 37629 36580
4. 4. Others 115186 83225 91329
Source: Afghanistan Statistic Organization Yearbooks, 2017.

Table 4. Cereals Crop Production Tons

Indicator 2017 2016 2015 2014 2013 Average
Total cereal 5525177 5802040 6744259 6507329 6364000 6188561
Wheat 4555110 4673040 5370259 5169235 5050000 4963529
Rice 356565 410000 537000 512094 500000 463132
Barley 301856 403000 521000 514000 504000 448771
Maize 311646 316000 316000 312000 310000 313129
Source: Ministry of Agriculture, Irrigation, and Livestock

Table 5. Crop Yield of Agricultural Products Kg per/ Ha

Indicator 2017 2016 2015 Average
Cereal
Wheat 1980 2196 2024 2067
Rice 2996 2500 2441 2646
Barley 1377 1429 1521 1442
Maize 2052 2146 2488 2229

Ahmad Jawid MURADI, IJSRM Volume 06 Issue 10 October 2018 [www.ijsrm.in] EM-2018-754
Table 6. Livestock by Type of Animal Figures in Thousand
Animal 2017 2016 2015 Average
Cattle 5234 5261 5349 5281
Sheep 13265 13218 13485 13323
Goat 7448 7723 7059 7410
Camel 170.5 170 171 170.5
Horse 171.2 173 171 171.7
Ass 1472 1481 1441 1464.7
Mule 24.9 24.5 24 24.4
Chicken 11899 11863 11098 11620

Table7. Fruit Production and Area

Nuts Products (ton) Area (hectare)
Peach 15306 3110
Almond 32843 19481
Pomegranate 99871 9721
Apple 140903 19365
Grape 874541 82450
Walnut 6515 3949
Potato and beet 429499 96946
Potato 427917 35699
Sugar beet 1582 202
Sugarcane 17364 1333
Source: Ministry of Agriculture, Irrigation, and Livestock, 2017

Ahmad Jawid MURADI, IJSRM Volume 06 Issue 10 October 2018 [www.ijsrm.in] EM-2018-755