MCN / UNODC Afghanistan Opium Price Monitoring April 2009

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1 April 20 Afghanistan Opium Price Monitoring Monthly Report Ministry of Counter Narcotics, Islamic Republic of Afghanistan, Kabul And United Nations Office on Drugs and Crime, Kabul 1

2 MCN / UNODC Afghanistan Opium Price Monitoring April 20 Summary Opium prices are collected from 15 of 34 provinces. The prices are collected for dry and fresh opium from traders (Trader prices) and farmers (farm gate prices). Heroin and cannabis resin prices are also collected from Afghanistan and Peshawar, the nearest town in Pakistan. Dry opium prices o Average dry opium price at farm gate level is USD 74/kg compared to USD 98kg in April 20. This is the lowest price observed since September o Average dry opium price collected from traders is USD 79/kg compared to USD 1/kg in April 20. This is the lowest price observed since September o Farm gate dry opium prices are showing decreasing trend since year o Since June 2007, prices in the Western and Eastern Regions are constantly higher than the prices in other regions. Increase in prices in the Eastern and Western Regions can be attributed to their strategic positions in trafficking bordering Iran and Pakistan. Prices in Southern and Northern region are consistently lower than other regions since last few months. Lower prices in Southern region can be explained by availability fresh opium and opium stocks with the farmers and drug dealers as a result of bumper opium production in 2007 and 20. There is little opium produced in the north region in 20. Fresh opium prices o Average fresh opium price at farm gate level is USD 54/kg compared to USD 78/kg in April 20. o Average fresh opium price collected from traders is USD 64/kg compared to USD 87/kg in April 20. o Fresh opium prices at farm gate level and collected from traders were well above USD 100/kg till early Later prices decreased drastically. o Fresh opium prices at farm gate and trader level were well above USD 100/kg till early Later prices decreased drastically. Price at farm gate level and price collected from traders in April 20 are the lowest price ever recorded since UNODC started monitoring opium prices. Heroin and cannabis resin prices in Afghanistan o Average heroin price in Afghanistan is USD 2,150/kg compared to USD 2,438/kg in April 20. o Average cannabis resin price in Afghanistan is USD 49/kg compared to USD 63/kg in April 20. Heroin and Cannabis resin prices in Peshawar, Pakistan o Average heroin price in Pakistan is USD 3,158/kg compared to USD 3,254/kg in April 20. o Average cannabis resin price in Pakistan is USD 248/kg compared to USD 403/kg in March 20. 2

3 DRY OPIUM: FARM GATE PRICE: At the end of April 20, the national average price for one kilogram of dry opium in Afghanistan at the farm gate level was USD 74/kg with 6% decrease compared to price reported in March 20. This is the lowest price observed since September The average dry opium price is 24% less than the price reported in April 20 which was 98 USD/kg. The average dry opium price is showing a decreasing trend since January 20. Graph 1: Weighted average price of dry opium from September 2004 to April FARM GATE DRY OPIUM PRICE Price in (USD/Kg) Sep-04 Oct-04 Nov-04 Dec-04 Jan-05 Feb-05 Mar May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan- Feb- Mar- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Month Average lowest opium prices were $123/kg and $125 in 2005 and 2006 respectively; however lowest price of opium in 2007 was $91/kg and $82/kg in 20. This shows rapid drop of opium prices in 2007 and 20 compared to previous years. The highest opium prices were $171/kg and $158/kg in 2005 and 2006 respectively; however the highest price of opium was $128/kg in 2007 and $106/kg in 20. In general, prices were much higher prior to This shows the decreasing trend of opium prices. 3

4 TRADER PRICE: At the end of April 20, the national average dry opium price collected from traders was USD 79/kg with 8% decrease compared to price reported in last month. Dry opium price collected from traders has decreased in Eastern and Western regions by 9%, Southern region by 8%, North-eastern region by 5% and Northern region by 4%. Table 1: Regional Average Price of dry opium collected from traders (USD/Kg) Price of Dry Opium (USD/Kg) Region Mar- Change Eastern region (Kunar, Laghman, Nangarhar) % Southern region (Hilmand, Kandahar) % Western region (Badghis, Farah, Ghor, Hirat, Nimroz) % North-eastern region (Badakhshan, Takhar) % Northern region (Balkh, Faryab, Kunduz) % Average % Graph 2: Regional weighted average price of dry opium collected from traders January 2005 April 20 DRY OPIUM PRICE Price in (USD/Kg) Jan-05 Feb-05 Mar May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan- Feb- Mar- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Month Eastern Southern Western North-eastern Northern 4

5 Since June 2007, prices in the Western and Eastern Regions are constantly higher than the prices in other regions. Increase in prices in the Western and Eastern regions can be attributed to their strategic positions in trafficking bordering Iran and Pakistan respectively. Prices in Southern and Northern region are consistently lower than other regions since last few months. Lower prices in Southern region can be explained by availability of opium stocks with the farmers and drug dealers as a result of bumper opium production in 2007 and 20. There is little opium produced in the north and north-eastern regions in 20. The main reasons behind decrease in opium prices are low demand for opium and increase in law enforcement activities in the regions. In southern region, availability of fresh opium is another factor for the decrease as lancing has started since last 2-3 weeks. This trend of converging opium prices across regions within Afghanistan could be an indication of greater integration among the local markets. This warrants further studies. Table 2: Dry opium price change between March 20 and April 20 Price of Dry Opium (USD/Kg) March April Province Change Badakhshan % Balkh % Badghis % Farah % Faryab % Ghor % Hilmand % Hirat % Kandahar % Kunar % Kunduz % Laghman % Nangarhar % Nimroz % Takhar % Table 3: Dry Opium Price of Afghanistan dry opium in Pakistan (USD/Kg): May- Jun- Jul- Aug- Sep- Oct- Nov Dec- Jan- Feb- Mar- FRESH OPIUM: At the end of April 20, the national average price of fresh opium was USD 54/kg at farm gate level with 5% decrease and USD 60/kg at trader level with 6% decrease compared to the prices reported last month. Fresh opium prices at farm gate and trader level were well above USD 100/kg till early Later prices decreased drastically. Price at farm gate level and price collected from traders in April 20 are the lowest price ever recorded Since UNODC started monitoring opium prices. After the harvest season there is no fresh opium available, but farmers keep their fresh opium in plastic bags or dishes covered with leaves in order to preserve moisture. This opium is referred as fresh opium. 5

6 HEROIN PRICES: UNODC regional offices in Afghanistan and Pakistan reported below prices for Heroin (prices of best quality considered). Table 4: Heroin Price in Afghanistan and Pakistan (USD/Kg) Afghanistan May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Badakhshan Balkh Hirat Nangarhar Kandahar Takhar Average May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Pakistan Peshawer CANNABIS RESIN PRICES: UNODC regional offices in Afghanistan and Pakistan reported below prices for cannabis resin (prices of best quality considered). Table 5: Cannabis resin price in Afghanistan and Pakistan (USD/Kg) Afghanistan May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Badakhshan Balkh Hirat Nangarhar Kandahar Takhar Average May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Pakistan Peshawer

7 Graph 3: Average price of dry opium in Nangarhar and Kandahar provinces collected from traders (USD/kg), March April US$/kg Jan-97 Feb-97 Mar May-97 Jun-97 Jul-97 Aug-97 Sep-97 Oct-97 Nov-97 Dec-97 Jan-98 Feb-98 Mar May-98 Jun-98 Jul-98 Aug-98 Sep-98 Oct-98 Nov-98 Dec-98 Jan-99 Feb-99 Mar May-99 Jun-99 Jul-99 Aug-99 Sep-99 Oct-99 Nov-99 Dec-99 Jan-00 Feb-00 Mar May-00 Jun-00 Jul-00 Aug-00 Sep-00 Oct-00 Nov-00 Dec-00 Jan-01 Feb-01 Mar May-01 Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 Feb-02 Mar May-02 Jun-02 Jul-02 Aug-02 Sep-02 Oct-02 Nov-02 Dec-02 Jan-03 Feb-03 Mar May-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Jan-04 Feb-04 Mar May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Jan-05 Feb-05 Mar May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan- Feb- Mar- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Nangarhar (eastern Afghanistan) Kandahar (southern Afghanistan) unweighted average

8 Afghanistan: Average Dry Opium Price (April 20) CHINA UZBEKISTAN TAJIKISTAN TURKMENISTAN JAWZJAN BALKH Trader: 73 Farmer:68 KUNDUZ Trader: 64 Farmer:0 TAKHAR Trader: 81 Farmer:76 BADAKHSHAN Trader: 81 Farmer:80 FARYAB Trader: 83 Farmer:76 SARI PUL SAMANGAN BAGHLAN HIRAT Trader: 101 Farmer:84 BADGHIS Trader: 62 Farmer:54 GHOR Trader: 62 Farmer:53 DAY KUNDI BAMYAN GHAZNI PANJSHIR NURISTAN KAPISA KUNAR PARWAN LAGHMAN Trader: 90 Farmer:88 Trader: 88 Farmer:83 KABUL WARDAK NANGARHAR Trader: 95 Farmer:94 LOGAR PAKTYA KHOST Legend Price not collected Price collected INDIA Trader: Trader dry opium price in USD/kg Farmer : Farmer dry opium price in USD/kg FARAH Trader: 81 Farmer:69 URUZGAN ZABUL PAKTIKA International boundary Provincial boundary IRAN NIMROZ Trader: 101 Farmer:84 HILMAND Trader: 70 KANDAHAR Farmer:64 Trader: 68 Farmer:62 PAKISTAN Km Source: Government of Afghanistan - National monitoring system implemented by UNODC Note: The boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by the United Nations.

9 Regional grouping of provinces for the opium poppy survey in Afghanistan 60 E 65 E 70 E 75 E UZBEKISTAN TAJIKISTAN TURKMENISTAN Faryab Jawzjan Northern Sari Pul Mazari Sharif Balkh Samangan Fayzabad Badakhshan Panjshir Nuristan Badghis 35 N Bamyan Parwan Kapisa Eastern 35 N Kunar Kabul Laghman Jalalabad Hirat Kabul Legend Wardak INDIA Hirat Logar Nangarhar Ghor Regional grouping of provinces Western Central Day Kundi Paktya Central Kunduz Baghlan Takhar North-eastern Farah Farah Southern Uruzgan Kandahar Zabul Ghazni Paktika Khost PAKISTAN Eastern North Eastern Northern Southern Western Main cities Hilmand Kandahar IRAN ± International boundaries Nimroz Provincial boundaries Km 30 N 30 N GCS WGS E 65 E 70 E 75 E Source: Government of Afghanistan - National monitoring system implemented by UNODC Note: The boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by the United Nations.

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