PRESS RELEASE
FOR IMMEDIATE RELEASE
CONTACT: Marie K. Thompson
DATE: August 20, 2002
IFDC
Technical Assistance in Afghanistan Has Many Facets
 “Considerable
progress is being made in the Afghan fertilizer sector,” says John
H. Allgood, Director of IFDC’s Finance and Administration
Department. Allgood
recently visited Afghanistan to gain an overview of IFDC’s project
in that country and to provide marketing expertise.
“The spring wheat program, which involved the emergency
supply of fertilizers under USAID funding, was critical to providing
an estimated 70,000 of the poorest Afghan farmers an opportunity to
increase their wheat production substantially through the use of
appropriate fertilizers. The
fertilizers were made available through the private sector dealers;
thus, a key program benefit was in helping to establish and fortify
the private sector’s presence in the agri-input market.”
Allgood
observed that today there is very little government intervention in
the Afghan fertilizer market. All fertilizer dealers are private
entities—arranging their own working capital.
Fertilizer prices are market based. Fertilizer supply
availability is good; product quality appears good based upon visual
inspection, and prices are locally competitive and generally
consistent with world market prices.”
“The
fertilizer dealers visited in Kabul and nearby markets have
established business linkages with importers/wholesalers. Restocking
of inventories from Jalalabad is accomplished rather efficiently and
timely,” Allgood says. “The typical dealer shops sell not only
fertilizer but also other agricultural inputs and other consumables.
The shops are in many ways typical of those seen in other Asian
markets; dealers sell by the 50-kg bag or in small quantities from
open fertilizer bags. Basically they perform the supply function
reasonably well, particularly since there is no formal credit system
to support inventory management.”
The
primary missing link is product knowledge and information on
fertilizer use. “Agri-input
dealers do not have adequate product knowledge to provide farmers
proper advisory services. This is where IFDC’s assistance can be
so helpful. Programs have already been started to fill in the
knowledge gaps for the dealers. One dealer interviewed mentioned
that the IFDC training program that he had attended was most helpful
and requested more help on improving his skills and knowledge.”
IFDC
can provide Afghanistan assistance in other areas as well; for
example, the dealers need help with proper storage techniques and
the policymakers need guidance on establishing a policy framework
that is market friendly. Assistance is also needed in developing
regulations regarding fertilizer quality control.
“Physical
storage of fertilizer stocks could be improved through proper
stacking and segregation
of different products,” Allgood says.
“Afghanistan is eager to develop its agriculture sector.
The private sector has responded quickly and favorably to the
opportunity to engage in the fertilizer business, and a vibrant agri-input
market is a key to improved agriculture sector performance,”
Allgood says. “Dealers
are risking their own capital and have made business linkages to
ensure a smooth flow of fertilizer products from neighboring
countries. The market is making a fast transition from one wherein
emergency relief was a priority to one in which a primary
development effort is warranted. An excellent opportunity now exists
to make lasting gains in developing the inputs markets.”
Five
priority issues need to be addressed, as follows:
• Improved market transparency is a must to ensure proper functioning
of the markets
• Dealer training is critical to improve the farmer advisory skills of
dealers and to improve their skills in inventory management,
promotion, etc.
• Policy reform is a critical issue to ensure the policy environment
remains market friendly. Key threats in this regard are rejuvenation
of the Afghanistan Fertilizer Company, taxation of imports, price
controls, etc.
• A regulatory system based upon a truth-in-labeling concept is needed
to strengthen market integrity.
• Promotion of best use practices—low-cost nutrient sources, proper
use practices, etc.—is key to improved farmer incomes.
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