SEED AND CROP IMPROVEMENT
SITUATION ASSESSMENT
IN

AFGHANISTAN

V.SEED USE AND SUPPLY

V.5. IMPROVED SEED ENTERPRISE (ISE)

V.5.1. FORMATION

"The Afghan Seed Company (ASC) was formed in 1978 (Official Gazette, 20 Dalwa 1356, 9 February 1978). The ASC (Constitution) Law (15 Dalwa 1356 of 4 February 1978) was set up as a Government Joint Stock Company, to perform specified tasks in production, processing, testing, certification, distribution and sale of seed; that is, granting official permits for any sale and distribution of seed and laying down labeling requirements. ASC management was vested in the then Supreme Council and Executive Board. Later, its name was changed to "Improved Seed Enterprise" (ISE) and 21 farms were transferred to it for producing seed of various crops. These farms had a total area of 11,768.27 ha, with 5,504.87 ha under cultivation. The headquarters of the Enterprise was in Kabul; it had several sub-offices in different provinces.

V.5.2. SEED OPERATIONS

"In-country seed multiplication programs were conducted by FAO from 1982 to 1992, with the cooperation of the Ministry of Agriculture and ISE. After 1992, seed multiplication projects were implemented by FAO from Pakistan through NGO's or directly with local communities. The Improved Seed Enterprise (ISE) and the Department of Extension and Production started improved seed production of vegetables on a modest scale through the UNDP/FAO-assisted Seed Production and Training Project in the government-controlled area. The project established various facilities such as seed testing laboratories, vegetable seed processing facilities, five small seed production and training farms, and a training center. Great emphasis was placed on improving trained manpower in various aspects of seed technology. The activities of this project were later taken over by the Seed Improvement Programme of Northern Afghanistan (AFG/93/001) with the main objective to promote the production and multiplication of quality cereal seed and seedlings of vegetables and saplings of fruit trees for distribution to farmers with a view to increase the supply of food, fresh vegetables and fruits necessary to improve the nutritional standards of the people.

"The above arrangement continued up to April 1992. At the time of the collapse of the government of Dr. Najibullah, all facilities were lost due to large-scale looting which followed the change in the regime" (FAO reports).

V.5.3. FARMS

The ISE produces seed on the following farms (reported by FAO).

Table 24 (PDF File 57Kb)
Improved Seed Enterprise (ISE) Farms

V.6. ISE-KABUL

V.6.1. OPERATIONS

ISE is a semi-autonomous government agency under the Ministry of Agriculture and Livestock. If it shows a loss, it must cover its own losses. If it shows a profit, it must pay a part of this to the government. Salary of the lead staff at Kabul was reported as Afg 100,000 plus Afg 60,000 living allowance per month (exchange rate as of May 5, 2002 was 38,000/US$1).

Each of the ISE units (farms, in some cases) operates completely separately from the others. For example, the "headquarters" staff reports that they have no voice over units operating in other Provinces. When the mujahideen took over in 1992, the different units became separate. The Kabul unit works with and controls only the 5 ISE farms in Kabul Province.

After the period of conflict, 5 units remain: Herat, Mazar-I-Sharif, Baghlan, Kandahar, and Kabul. The Kandahar unit was reportedly badly looted and is not operating. It is not known if any of the former contract growers remain, according to Fitzherbert. The Kabul unit's buildings, equipment, etc., are in poor condition. Reportedly, most of its equipment, vehicles, furniture, etc., were looted. Remaining equipment should be replaced, and buildings renovated. In the process, it should be determined whether or not ISE should move to a new location.

ISE has been an IP (implementing partner) for FAO for some 20 years. Staff reports that currently, about 60% of seed production of the Kabul unit is for its own sales account, while about 40% is for the FAO program. The benefit of working for FAO is that FAO pays for the seed (i.e., payment to the contract grower) with WFP food grain at a ratio of 1:1.25. ISE then receives the seed without further payment (i.e., at no real cost to ISE), and income from sales of seed go into ISE's account to pay for staff salaries and operating expenses. Of production capacity of 2,500 MT, about 1,500 MT is paid for with WFP/FAO food grain.

ISE produces seed on its own farms (both for FAO and for its own account). It also contracts with farmers to produce seed.

Roguing is apparently done as a routine production practice. However, there was reportedly no unbiased inspection for acceptance/rejection of seed fields. All operations are internal.

When wheat seed is harvested in the Kabul area, all seed is brought to the headquarters of ISE, where the cleaning and storage facilities are located. Seed is cleaned on an Agrosaw (India) model of the small farmer-size Petkus cleaner (Germany; one air blast, 2 screens; reported capacity 3-4 50-kg bags/hour), then is treated and bagged into 50-kg bags. The cleaning operation is in the open air of the yard of the building. Bags are then put into storage, in the adjoining building. There are 2 storages, one of about 50 MT, and the other about the same size. Reportedly, total storage capacity is about 200 MT in the compound.

ISE-Kabul reported that it has a plan for some 250 MT of wheat seed this year for fall planting. Of this, 150 MT is for FAO, and ISE will have about 100 MT wheat seed for sale on its own account.

For marketing, when the seed is ready for farmers, this is announced on the radio. Farmers who want seed then come to the ISE headquarters; ISE does not have different sales outlets, or take seed to villages. For a farmer to receive seed, his local Extensionist must certify that the person is really a farmer and works his land. Then, he can buy seed at the ISE warehouse.

Seed is sold at prices set by ACBAR.

V.6.2. CURRENT STATUS

At its original establishment, ISE was a viable, functioning and needed entity. Today, however, it has been looted, most physical assets have deteriorated, conditions/needs have changed, staff (while still dedicated and trying to serve the country's needs) is severely limited in what they can accomplish with existing resources, and other constraints.

V.6.3. IMPROVEMENTS NEEDED

This is based primarily on ISE-Kabul. Some of the other units are in similar condition, which some (notably Herat) are in comparatively good condition.

The current needs of farmers, and the current status of ISE, should be carefully analyzed in light of the practical potential of ISE and its real-time costs, in comparison to the costs and potential benefits of closing ISE and establishing a new seed program based on today's needs.

V.6.3.1. If ISE is Continued

Improvements needed include replacement of cleaning/treating/bagging equipment with more efficient and suitable facilities, rehabilitation/refurnishing offices, rehabilitation of storages, subsidized funding from government/other agencies, training/reinforcing/expanding staff, news locations more effective in serving farmers, new transport and handling equipment and facilities, currently-useful marketing facilities and approaches, and general improvement of the buildings. Because of the growth of the city, ISE is now in an inappropriate location with respect to the farms and farmers.

And, ISE cannot do it all itself. There must be an established adequate-if-basic infrastructure to help ensure that seed can truly provide maximum benefit to farmers, in helping the farmers to produce more at less ultimate per-unit cost. Even in an informal seed supply situation (which Afghanistan will-and should-have), additional inputs from additional agencies are required. At a minimum, these include:

  1. A National Seed Policy, to establish an official base for the importance of seed in agriculture and food supply, and officially establish government support for production and supply of improved seed, in a form which can attract non-government investment.
  2. A National Seed Law, which sets directions for seed supply and use, with realistic regulations to guide its implementation in a manner which encourages-rather than restricts-seed development and use.
  3. A strong, nationwide Agricultural Extension program, with specialists who can advise/assist/guide local seed production and supply, and at the same time educate farmers on the benefits of good seed and help them obtain it.
  4. A decentralized seed production/supply system which can provide high-quality seed to meet local needs. Decentralization should be accomplished in such a manner that it (1) helps establish small local agro-enterprises, (2) meets local needs from local production, (3) minimizes overhead costs, (4) minimizes transport and distribution costs, (5) minimizes operating costs so that better seed can be supplied to farmers at a price they can afford, (6) is responsive to local needs, and (7) uses its production system to gain the trust and involvement of local farmers, and demonstrate to them the benefits of better seed.

In addition, staff felt that the primary needs to make ISE a viable organization are:

  1. Re-combine all units into one "free-to-manage-itself) enterprise. Only the Minister of Agriculture should be able to direct its management operations.
  2. Follow the original Articles of Incorporation, in which the ISE is free to adjust its operations and make management decisions, and to diversify into related activities to increase its cash flow.
  3. New machines and facilities are essential to improve seed quality, and test it.
  4. There is presently no marketing of seed; if all ISE units were combined into one centrally-managed enterprise, seed could be handled at/sold from the different units, located closer to farmers, and effective marketing could be conducted.

V.6.3.2. If ISE is Replaced With a New Entity/System

ISE was established in 1976, when needs and conditions were considerably different. Today, almost everything has changed (except farmers' continuing need for high-yielding seed!). Some of ISE's facilities have been looted. A new government is starting on a new approach.

ISE may not be the most suitable infrastructural/organizational system to meet today's needs, and to operate on a cost-efficient, quality-effective basis. It is clear that the program supported by FAO was focused on supplying a part of the seed needs, and not on establishing an operating system which could become self-sustaining and operate entirely with Afghan personnel, accumulate funds to maintain its own facilities, etc.

Now is the ideal time to initiate a detailed study to determine:

  1. What infrastructure is most suited to the country's needs.
  2. What organization/system of supplying the needed seed best fits the needs, costs, and situations.
  3. How this system can be structured to attract domestic and foreign private-sector investment.
  4. How the system could produce domestic needs for food crop seed, and develop export production of low-volume, high-value seed for which Afghanistan's topography (of many isolated valleys with irrigation, and dry climate) is ideal. Such seed could become a major export earner.

V.6.4. MIN AGRI REHABILITATION PRIORITIES FOR ISE

The Ministry of Agriculture and Animal Husbandry of the interim government cites its priorities in rehabilitating the Improved Seed Enterprise as:

  1. Rehabilitation of improved seed laboratory.
  2. Rehabilitation of improved seed greenhouse in Badam Bagh.
  3. Rehabilitation and provision of equipment for seed cleaning (second priority).
  4. Rehabilitation and equipment compilation of vegetable and grass seed farm (second priority)
    (letter 321/201/18 11. 1389, Minister of Agriculture and Animal Husbandry to FAO).
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