Rising Opium Prices Could Push Afghan Farmers Back Into Production

Soaring prices of opium in Afghanistan may encourage more farmers back into cultivation of the drug, the U.N. has warned.
Rising Opium Prices Could Push Afghan Farmers Back Into Production
9/30/2010
Updated:
9/30/2010
Soaring prices of opium in Afghanistan may encourage more farmers back into cultivation of the drug, the U.N. has warned.

The law of supply and demand has meant that opium production, once considered unprofitable, is likely to pick up again in the near future, according to a report by the U.N. Office on Drugs and Crime (UNODC).

The poppy-growing provinces of Helmand and Kandahar were devastated last year by a plant infection, causing the level of output to fall by 48 percent.

However, the dramatic cut in production has pushed the price of the drug up to $169 a kilo (2.2 pounds), a 164 percent increase from the average price of $64 a kilo in 2009.

Yury Fedotov, executive director of UNODC, said that while the reduction of production was good news, there was little room for “false optimism.”

“The market may again become lucrative for poppy crop growers so we have to monitor the situation closely,” he said.

The price increase this year follows a steady decline in prices between 2005 and 2009, which dissuaded farmers from growing opium.

Much of the opium production is centered around areas such as Kandahar, a Taliban heartland, and the profits are often used to fund the Taliban’s war effort.

“These regions are dominated by insurgency and organized crime networks,” said Fedotov.

“This underscores the link between opium poppy cultivation and insecurity in Afghanistan, a trend we have observed since 2007,” he added.

Afghanistan produces 92 percent of the world’s opium supply, and farmers are often driven to cultivating poppies through poverty and social exclusion.

“We need a broader strategy to support farmers throughout Afghanistan by providing them with access to markets and a secure environment,” said Fedotov.

“Stability and security, combined with sustainable alternative development opportunities, will give farmers the chance to make a living without resorting to opium poppy cultivation.”

Total opium output for this year was 3,200 metric tons, down by 48 percent from last year. However, the gross income for farmers per hectare (1 hectare = 2.47 acres) has increased 36 percent to $4,900.

The report said that although the number attacks on governor-led opium eradication teams had fallen this year, the number of fatalities had increased to 29, up from 21 in 2009.

Governor-led programs eradicated only 2,316 hectares (8.9 square miles) in the effort to curb opium production.

Helmand was the province with the highest number of hectares eliminated (1,602; 6.2 square miles), however, that figure was dwarfed by the scale of opium cultivation in that region (65,045 hectares; 251 square miles).

Fedotov called for the rule of law to be strengthened in the crackdown on opium production.

“Corruption and drug trafficking feed upon each other and undermine any development effort in Afghanistan,” he said.

“We must continue to encourage the Afghan government to crack down on corruption.”