True Potential of Afghanistan Agriculture

True Potential of Afghanistan Agriculture

For the first time, in the spring of 2011, 438 potato growers - members of seven Cooperatives from Bamyan province- received Islamic financing from the Agricultural Development Fund (ADF). Potato production is a mainstay in Bamyan, however productivity was low due to two fundamental factors: the high price and poor quality of fertilizers available in the province; and the use of recycled and low quality seed.
To address the stated issues, ADF initiated its support to Bamyan Cooperatives by providing them with required Islamic finance to select and purchase premium quality fertilizers and top quality potato seed, taking advantage of collective action as a way to reduce the cost of inputs. As a result of this initiative, number of Cooperatives along with the farmer beneficiaries are increasing year by year.
Keeping a successful program implementation in mind, ADF started the Islamic finance application process for 2019 as early as February. The ADF Office in Bamyan collected and conducted initial screening of the Islamic finance applications. By mid-March, which is the beginning of spring and cultivation season, a team from Kabul traveled to Bamyan to conduct two agriculture credit Shura events to encourage additional Cooperatives to apply.
ADF has been in business with Bamyan Cooperatives for the past eight years. This year 53 agricultural Cooperatives (mostly potato growers) with 1,447 farmer members from Center, Yakawalang, Panjab, and Waras District of Bamyan had access to credit through the Agricultural Development Fund. This year, the ADF Credit Committee based on the ADF Management’s request approved two Islamic financing for Bamyan Cooperatives totaling AFN 166.6 Million.
ADF in close collaboration with Bamyan DAIL commenced the distribution of fertilizers to farmers. On May 11, 2019, His Excellency Mohammad Taher Zuhair (Bamyan Governor), Mr. Abdul Wahab Mohammadi (Bamyan DAIL Director), ADF Representatives, and officials from Bamyan DAIL Cooperatives Department officially inaugurated the distribution of fertilizers program in Central Bamyan. During the opening ceremony while addressing the participants, the Governor expressed his deep appreciation and sincere gratitude to ADF for its constant support to farmers. He indicated that the ADF program in Bamyan has been remarkably constructive and successful and hope the farmers get maximum benefit to increase their yields.
Bamyan DAIL Director in his speech said that the ADF Islamic financing program to Bamyan Cooperatives aimed at meeting the credit needs of the farmers in order for them to increase the potato production.
ADF stays committed to continue its financial and technical support to help Bamyan farmers grow their enterprises in order to improve the livelihood of their families, return profits to their respective Cooperatives so that the farmers can receive services in the future, and ultimately produce the best quality potato for export to international markets and domestic consumption.

“We are pleased receiving our required inputs on time and via credit. Thanks to ADF”
Farmer Members of Nayak, and Millie Cooperatives

Fertilizers Distribution by Bamyan Governor and DAIL Director in Central Bamyan