Reasons behind opium cultivation

Reasons behind opium cultivation - longer version

After thirty years of continuous violent conflict, Afghans live in an environment of acute risk and high insecurity and obtain most benefits from their traditional cultural institutions and the informal economy. Opium poppy, though illicit, is attractive crops because it fetches good prices, is not perishable and can be used as collateral. High in value but low weight, opium has been called, a low risk crop in a high risk environment. Labour requirements are intense and met in part by the extended family and by hiring farm labourers.

In recent years rising labour costs, falling prices from US$ 300 in 2002, to under US$ 90 in 2005, and the improved conditions in terms of security and markets, make opium less and food crops more attractive for rich farmers. Poorer farmers working marginal land in more remote areas, continue to depend on opium and its by products, the stalks which can be used for fuel and seeds for oil. Future opium harvests provide collateral against which farmers can borrow from money lenders, and enter into  exploitative patron-client relations. The peculiar status of opium, attracting the dangers of violent incursion on the one hand, and high, though volatile prices on the other, have structured strong rural hierarchies, reinforced inequalities and reinforced the position of corrupt officials and war lords.