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MCN / UNODC Afghanistan Opium Price Monitoring May 2009 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 73/kg compared to USD 91kg in May 2008. This is the lowest price observed since September 2004.

o Average dry opium price collected from traders is USD 78/kg compared to USD 99/kg in May 2008. This is the lowest price observed since September 2004.

o Farm gate dry opium prices are showing decreasing trend since year 2004.

o Since June 2007, prices in the Western and Eastern Regions are constantly higher than the prices in other regions. Prices in Southern and Northern region are consistently lower than other regions since last few months. There is little opium produced in the north and north-eastern regions in 2008.

• Fresh opium prices

o Average fresh opium price at farm gate level is USD 52/kg compared to USD 64/kg in May 2008.

o Average fresh opium price collected from traders is USD 58/kg compared to USD 73/kg in May 2008.

o Fresh opium prices at farm gate and trader level were well above USD 100/kg till early 2007. Later prices decreased drastically. Price at farm gate level and price collected from traders in May 2009 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 2,153/kg compared to USD 2,311/kg in May 2008.

o Average cannabis resin price in Afghanistan is USD 49/kg compared to USD 60/kg in May 2008.

• Heroin and Cannabis resin prices in Peshawar, Pakistan

o Average heroin price in Pakistan is USD 3,021/kg compared to USD 3,297/kg in May 2008.

o Average cannabis resin price in Pakistan is USD 222/kg compared to USD 270/kg in May 2008.

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DRY OPIUM: FARM GATE PRICE: At the end of May 2009, the national average price for one kilogram of dry opium in Afghanistan at the farm gate level was USD 73/kg with 1.3% decrease compared to price reported in April 2009. This is the lowest price observed since September 2004. The average dry opium price is 20% less than the price reported in May 2008 which was 91 USD/kg. The average dry opium price is showing a decreasing trend since January 2009.

Graph 1: Weighted average price of dry opium from September 2004 to May 2009

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TRADER PRICE: At the end of May 2009, the national average dry opium price collected from traders was USD 78/kg with 1% decrease compared to price reported in last month. Dry opium price collected from traders has decreased in Southern and Northern regions by 1% and 7% respectively. In Western and North-eastern regions, dry opium prices has increased by 1% and 2% respectively. No change in the prices of Eastern region is observed. Table 1: Regional Average Price of dry opium collected from traders (USD/Kg)

Price of Dry Opium (USD/Kg)

Region Apr-09 May-09 Change Eastern region (Kunar, Laghman, Nangarhar) 92 92 0% Southern region (Hilmand, Kandahar) 69 68 -1% Western region (Badghis, Farah, Ghor, Hirat, Nimroz) 84 85 1% North-eastern region (Badakhshan, Takhar) 81 83 2% Northern region (Balkh, Faryab, Kunduz) 73 68 -7%

Average 79 78 -1%

Graph 2: Regional weighted average price of dry opium collected from traders (January 2005-May 2009)

DRY OPIUM PRICE

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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 2008. There is little opium produced in the north and north-eastern regions in 2008.

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The main reasons behind decrease in opium prices are low demand for opium and increase in law enforcement activities in the regions. In Southern, Western and eastern regions, availability of fresh opium is another factor for the decrease as opium is being harvested.

Graph 3: Provincial average price of dry opium collected from traders (January 2009 - May 2009)

DRY OPIUM PRICE CHANGE (JAN-MAY)

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Table 2: Price of Afghanistan dry opium in Pakistan (USD/Kg):

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08 Jun-08

Jul-08

Aug-08

Sep-08

Oct-08

Nov-08

Dec-08

Jan-09

Feb-09

Mar-09

Apr-09

May-09

Dry Opium 270 205 168 197 166 102 153 202 214 188 136 142 129

FRESH OPIUM:

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At the end of May 2009, the national average price of fresh opium was USD 52/kg at farm gate level with 3.7% decrease and USD 58kg at trader level with 3.3% 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 2007. Later prices decreased drastically. Price at farm gate level and price collected from traders in May 2009 are the lowest price ever recorded Since UNODC started monitoring opium prices.

HEROIN PRICES:

UNODC regional offices in Afghanistan and Pakistan reported below prices for Heroin (prices of best quality considered).

Table 3: Heroin Price in Afghanistan and Pakistan (USD/Kg)

Afghanistan May-

08 Jun-08

Jul-08

Aug-08

Sep-08

Oct-08

Nov-08

Dec-08

Jan-09

Feb-09

Mar-09

Apr-09

May-09

Badakhshan 2211 2493 2494 2499 2507 2507 2407 2417 2398 2383 2383 2383 2383 Balkh 3200 3300 3300 3000 3100 3000 2900 2900 3000 3200 3000 2900 2850 Hirat 2227 2102 2049 2088 2093 1900 1868 1826 1867 1735 1602 1364 1500 Nangarhar 1799 2126 1970 1839 1920 1984 1875 1891 1891 1902 1817 1858 1800 Kandahar 2420 2425 2420 2420 2480 2370 2290 2320 2330 2335 2320 2300 2290 Takhar 2010 2193 2194 2194 2288 2288 2197 2206 2110 2097 2097 2097 2097 Average 2311 2440 2405 2340 2398 2342 2256 2260 2266 2275 2203 2150 2153

Pakistan May-

08 Jun-08

Jul-08

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Peshawer 3297 3299 3144 3283 2559 2559 2542 2774 3152 3378 3101 3158 3021 CANNABIS RESIN PRICES:

UNODC regional offices in Afghanistan and Pakistan reported below prices for cannabis resin (prices of best quality considered).

Table 4: Cannabis resin price in Afghanistan and Pakistan (USD/Kg)

Afghanistan May-

08 Jun-08

Jul-08

Aug-08

Sep-08

Oct-08

Nov-08

Dec-08

Jan-09

Feb-09

Mar-09

Apr-09

May-09

Badakhshan 83 73 73 73 66 60 57 58 67 67 65 65 65 Balkh 86 90 90 69 80 70 63 58 67 71 67 67 67 Hirat 70 70 72 75 76 65 65 61 62 51 50 61 61 Nangarhar 39 29 21 26 26 26 31 25 38 27 27 35 37 Kandahar 18 18 18 22 24 23 26 27 28 28 27 22 20 Takhar 64 64 64 63 64 58 55 56 44 44 44 44 44 Average 60 57 56 55 56 50 50 48 51 48 47 49 49

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Peshawer 270 264 168 184 192 179 203 214 240 238 223 248 222

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Nangarhar (eastern Afghanistan) Kandahar (southern Afghanistan) unweighted average

Prices of dry opium in Nangarhar and Kandahar provinces collected from traders (USD/kg), March 1997 - May 2009

INDIAINDIA

URUZGAN

PANJSHIR

HIRAT

FARAH

HILMAND

GHOR

NIMROZ

KANDAHAR

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DAY KUNDI

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PAKISTANPAKISTAN

IRANIRAN

TURKMENISTANTURKMENISTAN

TAJIKISTANTAJIKISTANUZBEKISTANUZBEKISTAN

CHINACHINA

Trader: 69Farmer:63 Trader: 67

Farmer:61

Trader: 92Farmer:80

Trader: 101Farmer:85

Trader: 86Farmer:82

Trader: 56Farmer:47

Trader: 102Farmer:86

Trader: 57Farmer:48

Trader: 76Farmer:70

Trader: 68Farmer:64

Trader: 81Farmer:76

Trader: 60Farmer:0

Trader: 96Farmer:95

Trader: 90Farmer:85 Trader: 86

Farmer:81

Afghanistan: Average Dry Opium Price (May 2009)

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.

Legend

Price not collected

Price collected

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Farmer : Farmer dry opium price in USD/kgTrader: Trader dry opium price in USD/kg

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!

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IRANIRAN

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Regional grouping of provinces for the opium poppy survey in Afghanistan

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.

Southern

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LegendRegional grouping of provinces

! Main cities

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Provincial boundariesInternational boundaries

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