Economic

Farmers, Production Capacity Should Be Improved

Saturday May 25, 2013
Kabul (BNA) The ministry of agriculture, irrigation and animal husbandry considers rehabilitating and activating Agriculture Development Bank (ADB).
According to the in charges of ministry of agriculture, these are the old aspiration of farmers and after ratification by council of ministers would be opened soon and commence its activities again.
Despite the loan giving was continuing since two years by the construction and mortgage fund of the ministry of agriculture, but because of vast dimension of loan giving, one person can open account number individually in this bank. Naturally, comparing fund, through bank, the services be expanded.
The spokesman of ministry of agriculture and irrigation, Majidullah Qarar says that rehabilitation of export promotion bank is one of important projects of the ministry and told newsmen that the reason behind establishment of ADB is rendering services to farmers and horticulturists. This means that after establishment of ADB, loans would be provided. He added that despite the ministry of agriculture and irrigation commenced loan giving as of two years to peasants, but it was problematic, because, we can’t maintain contact with peasants individually. The larger our loan-giving was $100000, this is a great figure. But, one of the benefits of agricultural bank is this that the peasants can deal individually.
The second issue is having private account by peasant in the bank. To reactivate the bank, we worked two years on selection of model, satisfying of donors for investment and employment of a team which to have experiences in international level. Likewise, a sum of $150 million which was allotted by the US, it is 50 million dollars in management sector and model for employment of the team and &100 million other was laid down at the bank disposal as loan so to be circulated. The loan is paid according to the demand of peasant and growers that be in accord with their requirements and capabilities. 
They have no sufficient literacy, but the experts are standing beside them so to help them in providing program that is in their benefit. Qarar added that the high level of loan-giving would reach to $one million. About 20000 farmers benefited from the loan of bank last year. In present system, the low level of loan is $100000. We don t deal with farmers individually, but we give loan through cooperative. For example: in Nangarhar, loan was given to the fruit producers union and at the same manner loan was given to cooperative. Previously, till 100000 afs were dealt, but in the future, that in the individually to be dealt, the lowest level should be 10000 afs, and some peasants would have no more capability than that. Taking loan as the affairs in charges and economic experts lay emphasize on it, is effective for promotion of productive capacities, but the requirements of today farmers is more than that. The pedants and horticulturists of the country need to equipped spring houses so to keep their products in it and use them when they demanded. With the acceptance of this farmers , requirement , it should be said that the ministry of agriculture and irrigation would establish 30 spring houses for keeping fruits and vegetables with the capacity of 5000 tons of the said items . In the first step, this ministry would establish eight commercial spring houses in six provinces of the country that their total capacity reaches to 40000 tons. This is a good capacity. This program continues till three next years. According to the in charges of ministry of agriculture and irrigation, the management and irrigation, the management of these spring houses are belong to peasants and private sectors and in the near future the cooperatives would promote the management of large spring houses and as competitor in market for protection of products and for offering of these products to share in spring houses though their own addresses. But, this question is raised that with having such special programs, the ministry of agriculture and irrigation, would have another program so with its implementation, the government to meddle in market sans any pretext for free market. I n respond this question of ministry of agriculture , it should be said that beside all these programs for keeping balance in prices and when the government to face with problem and have a means in its hand to rescue from problems , this ministry considers to establish a strategic administration for strategic reservoirs and makes effort to inaugurate this project this year.
According to these projects, those silos which were active previously and were promoting the activities such as purchasing wheat from peasants and its storage and offering when it was necessary be rehabilitated. Likewise, other facilities of this program is this that hereafter , the consuming institutions of governments such as national army and police , would purchase their needed wheat from this administration in the future that from one hand , the wheat of peasants are purchased and on the other , it would be a reliable address for government institutions.
This initiative would take place after coordination with ministry of commerce and industry.
They believe that the basic aim of this project is this that the peasants, yields to find market and on the other facilities be provided for consumers. These facilities help both sides, either peasants or consumers to benefit from it. If was necessary, the government would meddle positively in the market. According to the ministry of agriculture in and irrigation, such meddling in market is common world-wide.
As Afghanistan is land – locked country, it needs to establish a strategic reservoir. This country is vulnerable, because, the neighbors repeatedly use the commercial and food items as political means. In such a situation the capacity –building should be made.
Dose establishment of strategic reservoirs and silos satisfy the market. In respond Qarar said that to build capacity for 10 percent population of Afghanistan, we should reserve for one year that estimates about 500000 metric tons. Beside government possibilities we encourage for establishment of private silos as well.
He continued that in connection with food items reservoirs, in neighboring countries, private sectors also have their own active contribution. As a whole, with government and private sector possibilities, it’s common that every year, the wheat yields are not the same specially, we are leaning over rain –fed wheat and during drought, we faced with serious problem. When the yields are sufficient, peasants have no market for their products.. In such a situation, Afghanistan should have a reservoir of 500000 tons wheat, especially in the years this country is faced with problems.
 

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