§ Mr. AncramTo ask the Secretary of State for International Development what steps his Department is taking to work with the governments of(a)Kazakhstan, (b)Turkmenistan, (c)Tajikistan and (d)Pakistan to stabilise wheat prices in Afghanistan; and what assessment he has made of the impact of wheat prices on stability within Afghanistan. [159503]
Mr. Gareth ThomasWe are working with the Afghan Government to assist them to build good relationships with all their neighbouring countries on a range of issues. To this end the Good Neighbourly Relations Declaration was signed in December 2002 between the Afghan Government and the six countries with which they share a common border. Discussions within this group encompass a range of issues, including trade.
Since the fall of the Taliban the cost of wheat in Afghanistan has fallen, partly due to aid agencies bringing in much needed food aid but also as a result of the break in the drought, which led to an 80 per cent., increase in the harvest. Discussions took place last year between my department, the Afghan Government and the aid agencies regarding the impact of wheat prices on the country. At that time it was noted that local purchase of wheat by aid agencies would increase its 1494W price and while this might have a positive impact for farmers it would also increase the market price for ordinary Afghans. The outcome of the discussions was a plan for WFP to procure 10,000 metric tons of wheat locally in 2004.