VZCZCXYZ0001
RR RUEHWEB

DE RUEHBUL #3337/01 2910954
ZNR UUUUU ZZH
R 180954Z OCT 09
FM AMEMBASSY KABUL
TO RUEHC/SECSTATE WASHDC 2346
INFO RUEHRC/USDA WASHDC
RUEHIL/AMEMBASSY ISLAMABAD 8024
RUEHRO/AMEMBASSY ROME 5264

UNCLAS KABUL 003337 
 
SIPDIS 
SENSITIVE 
 
DEPT FOR S/SRAP and SCA/A 
USDA FOR OSEC; FAS/MICHNER AND FCAP 
 
E.O. 12958:  N/A 
TAGS: EAGR EAID PGOV AF
SUBJECT: AFGHAN AGRICULTURE MINISTER UPBEAT ON AG SITUATION 
 
¶1. (SBU) SUMMARY:  Afghan Minister of Agriculture, Irrigation and 
Livestock (MAIL) Mohammed Asif Rahimi discussed Afghanistan's better 
than usual grain harvest and how to handle it, distribution of seeds 
and other inputs, collaboration with donors, and rural economic 
development with Coordinating Director for Development and Economic 
Affairs Ambassador E. Anthony Wayne October 13.  (Political aspects 
of the discussions were reported reftel.) 
 
¶2. (SBU) Specific issues Rahimi also noted included his ministry's 
efforts to get the word out to Afghan farmers -- and 
parliamentarians -- about the services MAIL offers at its 
headquarters and provincial levels.  Rahimi asserted the Afghan 
public sees MAIL positively around the country, particularly 
regarding the way that it is handling the wheat purchasing campaign, 
although he noted the need for improved transportation and storage 
capabilities.  He also wants WFP to buy some of the bumper wheat 
harvest and asked the USG to urge them to do so.  The Minister noted 
his vision of an expanded mechanism for donors to contribute to the 
Afghan Reconstruction Trust Fund of the World Bank that could 
subsume a number of smaller redevelopment projects in Afghanistan. 
The Minister and Ambassador Wayne also discussed the next steps 
regarding banning Ammonium Nitrate, which insurgents are using to 
make IEDs; the Minister has already acted to ban use of ammonium 
nitrate.  End summary. 
 
DELIVERING MINISTRY SERVICES 
---------------------------- 
 
¶3. (U) Minister Rahimi plans to invite all 34 provincial 
agricultural directors to Kabul for a workshop on the national 
agricultural strategy.  He also plans to have the provincial MAIL 
agricultural directors available to meet with parliamentarians from 
the areas these directors work in order to discuss services MAIL can 
provide in those provinces.  Some MPs accuse the Ministry of not 
providing all the services it claims, and Rahimi said the 
national-level meeting is a chance for the provincial directors to 
explain the situation. If services are indeed not up to 
expectations, Rahimi said corrective measures would be taken. 
 
¶4. (U) The Ag Minister also noted the workshop would be an excellent 
opportunity for the USG and other donors and development partners. 
Ambassador Wayne added the event could be particularly important to 
helping energize the districts and building a stronger Afghanistan 
agricultural team, one that includes the international advisors, as 
soon as the new government is formed.  Rahimi agreed there would be 
a new impetus once the energy that is now focused on the electoral 
question can be redirected. 
 
AMMONIUM NITRATE 
---------------- 
 
¶5. (SBU) Ambassador Wayne raised the concern that ammonium nitrate 
is being primarily used as an explosive in IEDs in Afghanistan, not 
as an agricultural input.  Repeating our appreciation for Minister 
Rahimi's actions against use of ammonium nitrate, Ambassador Wayne 
noted Defense Minister Wardak has agreed to convene an 
inter-ministerial meeting to implement the ban that MAIL had put in 
place.  Rahimi said he had heard from other ministers about the 
plans to meet.  The Minister also noted the October IED explosion 
near the Indian Embassy in Kabul probably used ammonium nitrate. 
Ambassador Wayne pointed out other fertilizers (i.e., urea) could be 
used as well to manufacture homemade explosives (HME), but, 
according to the Embassy's understanding, doing so requires use of 
other precursors, namely acids, which should also be monitored for 
malicious intent.  Rahimi quickly noted urea is hugely important for 
Afghan agriculture and could not be banned or removed from the reach 
of Afghan farmers. 
 
BUMPER WHEAT CROP 
----------------- 
 
¶6. (U) Regarding the current wheat purchasing campaign, especially 
given the difficult situation in the southwestern province of Farah, 
Minister Rahimi noted grain purchases are going well, perhaps 
unfortunately better than is the unloading and storage.  Wheat 
production in Farah, for example, may be greater than expected with 
up to 50,000 metric tons in that province alone needing buyers. 
Ramini pointed out mechanical limitations in the trucking fleet and 
grain storage facilities prevent them from keeping up with the 
larger than expected harvest this year.  The Minister said MAIL has 
contracted for 76,000 metric tons of wheat this crop year and over 
40,000 tons have been delivered.  He added the Ministry of Finance, 
per a decision reached at the October 12 Cabinet meeting, added $8.5 
million to MAIL's wheat purchasing budget. (Note: depending on the 
price paid to farmers, this additional funding would allow for 
purchases of about an additional 30,000 metric tons of wheat.  Local 
MAIL prices have been significantly higher than those the World Food 
Programme will pay; the WFP prices are loosely based on prevailing 
world market prices.  End note.)  Rahimi proudly stated this is the 
first time in 32 years that Afghanistan's Government has carried out 
a national wheat purchasing campaign. He reported that this effort 
has a positive impact on farmers who see the Government doing what 
it is supposed to be doing. 
 
WORLD FOOD PROGRAMME: CAN'T THEY BUY MORE? 
------------------------------------------ 
 
¶7.  (U) Minister Rahimi stated while the GIRoA is doing what it can 
to buy more of this season's crop, he would like the USG to urge the 
World Food Programme (WFP) to buy more as well.  According to the 
Minister, WFP has committed to buying 20,000 metric tons of wheat 
this year, but he would like them to buy additional quantities.  He 
asked that the USG weigh in with the WFP.  Embassy Ag Counselor will 
follow up with the WFP locally.  (Note: the WFP works with the Farah 
Farmers Union on wheat pricing and purchases.  Again, the relatively 
high prices MAIL offers make the WFP prices seem unattractive.  It 
was also interesting the Minster mentioned that 300,000 metric tons 
could be taken off the market without negatively affecting the 
market.  End note.) 
 
¶8. (U) The Agricultural Minster stated MAIL could buy the wheat on 
WFP's behalf, letting WFP pay for it and use MAIL facilities and 
purchasing mechanisms.  The MAIL would run the program through 
farmer cooperatives that would only charge one percent service 
charge. 
 
SEEDS OF CHANGE? 
---------------- 
 
¶9. (U) Minister Rahimi also noted MAIL and International Relief and 
Development (IRD, an implementing partner of USAID) are the major 
distributors of wheat seed this fall.  However, there are political 
challenges.  First, it is important that the face of wheat seed 
distribution is an Afghan one.  Secondly, he said it seems the wheat 
seed distribution effort will not be able to cover all districts. 
Rahimi reported he gets phone calls and complaints from governors 
and parliamentarians that the wheat seed distribution program is not 
covering everyone.  Still, at least some districts in all 34 
provinces will get some wheat seed; last year only half the 
provinces received seed.  The Minister continued that seed 
distribution needs to be sensible and systematic, prioritizing 
distribution to areas where winter sowing needs to take place now 
before soils freeze.  He said it is ironic provincial reconstruction 
teams (PRT) and agribusiness development teams (ADT) supplied seed 
first to districts that could have waited longer to receive the 
wheat seed. 
 
SYNCHRONICITY? USG WELCOMES IT 
------------------------------ 
 
¶10. (U) Ambassador Wayne asked whether MAIL would resume holding 
donor coordination.  Minister Rahimi told said MAIL would indeed 
restart those meetings once the political landscape becomes settled. 
 Ambassador Wayne went on to say that it would be particularly 
useful for the diverse members of the now-functioning USG 
interagency civil-military agriculture team in Afghanistan to have 
regular meetings with the Ministry as well, perhaps monthly, to sit 
together and ensure both parties are fully aware of progress, needs, 
and plans.  He added the USG is ready to sit down and discuss 
assistance programs in areas like agricultural infrastructure, 
micro-hydropower and other cross-cutting projects.  It will be 
important to have representatives from all those subsectors present 
to contribute to the discussion. 
 
¶11. (U) The Minister welcomed this close coordination with the USG 
agriculture team and agreed to follow up on the idea with his 
advisors.  He also encouraged the U.S. participation at the weekly 
MAIL activity review meetings held with agricultural project 
implementers and that more of the USG implementing partners to 
participate.  Ambassador Wayne said he appreciated the opening and 
would pass the invitation along to the appropriate Embassy offices. 
 
BIG PICTURE RURAL FINANCING 
--------------------------- 
 
¶12.  (U) The Minister's final topic was rural finance.  Research and 
discussion is underway on the topic, the Minister said, but more 
input is welcome.  He added that MAIL has asked the Food and 
Agriculture Organization (FAO) for an expert in farm credit to join 
the team of advisors on this project; Rahimi is looking for 
capitalization of $150 million with an estimated $10 million in 
operating capital.  Larger-scale producers and processors would be 
eligible for this new instrument, according to Rahimi. 
¶13.  (U) The Minister also said MAIL is working with the World Bank 
on a sector-wide umbrella scheme that would eventually subsume 
smaller projects. The foci of such a program would be irrigation, 
input supply chains, and markets.  Having it under the World Bank 
(Afghan Reconstruction Trust Fund or ARTF) would allow for easier 
donor participation and coordination. 
 
LEGITIMATE CLAIMS ON ACCOMPLISHMENTS 
------------------------------------ 
 
¶14.  (SBU) Ambassador Wayne also thanked the Minister for MAIL's 
contribution to the District Services Development Working Group 
(DDWG) process, noting the MAIL proposal stood out by articulating 
the services and the modalities for delivery.  He added the U.S. 
hopes to have successful pilot projects at the district level 
starting in targeted areas.  Minister Rahimi replied he thought his 
ministry's proposal was well thought out and touched on extension, 
integrated pest management, irrigation, and livestock health 
programs.  He also said the MAIL proposal would be easy to 
implement.  Ambassador Wayne commended MAIL for looking at the 
process in the proper light and for building the legitimacy of the 
service system -- not trying to claim legitimacy by merely building 
hard structures.  It will take time, Rahimi said, but it will be 
worth it in the long run.  The important thing is that the work is 
done by Afghans on the Afghan time line, something that could make 
it a measure of legitimacy and of a functioning government. 
 
EIKENBERRY