Back to Market Research

Afghanistan Agriculture Market in 2025

Research Report PDF Available

Afghanistan Agriculture Market in 2025

Last Updated: February 22, 2026

Afghanistan's agricultural sector in 2025 presented a paradox of resilience and crisis. The sector remained the economic backbone, supporting approximately 60% of the workforce and contributing around 20-25% to GDP. Despite severe challenges, it achieved an average wheat harvest of 4.5 million tonnes in 2025. However, this masked deeper systemic vulnerabilities: a resurgence in opium poppy cultivation by 74% despite an official ban, a 26% contraction in total cultivated area since 2023, and worsening food insecurity affecting 40% of the population. The sector operated under intensifying climate pressures with drought affecting at least 19 provinces while simultaneously navigating significant trade realignments following border closures with Pakistan. These developments occurred within a broader economy experiencing 4.3% GDP growth but declining per capita income, revealing agriculture's critical role in both livelihood preservation and national economic stability

Agriculture remains fundamental to Afghanistan's economy and social fabric. In 2025, approximately 60% of the population derived livelihoods directly or indirectly from agriculture, highlighting its role as the primary employment sector. The sector contributed an estimated 20-25% to national GDP, with fluctuations depending on climatic conditions and harvest outcomes. Despite overall economic growth of 4.3% in 2025, rapid population expansion estimated at 8.6% resulted in a 4% decline in GDP per capita, increasing pressure on rural households dependent on agriculture for subsistence.

Government revenue dynamics significantly impacted agricultural policy. Domestic tax revenues strengthened to 17.1% of GDP in 2025 through enhanced enforcement, yet declining external grants constrained public investment capacity in rural infrastructure. The banking sector's fragility, characterized by regulatory uncertainty and limited lending, restricted farmers' access to formal credit, pushing many toward informal financing channels. These macroeconomic conditions created an environment where agricultural productivity became increasingly critical for broader economic stability.