Identifying The Barriers To Afghanistan's Saffron Export

Investments in Afghanistan concerning both foreign and domestic businesses since AISA's was the establishment in 2003 have been steadily increasing.According to a survey focusing on fixed business investments in Afghanistan.The state distributes investments concentrate on four main sectors;the improvement of construction,telecommunications,banking,and transportation sectors,totaling over 8.9$ billion.Agriculture,despite covering a greater area of Afghan GDP and yet having massive potential for investors has been overlooked.Therefore,this report thrived on examining the hypothesis that areas that were receiving minimal attention from the government,to then evaluate how NGO's and investors – in this case,can have a high economic return threshold from the economic growth that is,Afghan Saffron.The hypothesis of the thesis is to discover potential opportunity outcomes for prospective investors;this paper will aim to achieve this by studying the market structure and performance of Afghan Saffron.The thesis will begin by identifying the constraining marketing factors,ensuring to carefully observe and determine what causes the economic and export market to fail,to recommend measures,solutions,and actions to develop the Saffron industry.This study will employ a general approach for the identification of market opportunities and constraints.Data and information are collected through fieldwork,involving on-site visits to businesses and factories,and interviews with business owners,heads of associations and Ministry of Agriculture.There is also a demonstration of data sampling compiled from studies and reports prior,identifying the fluctuation on the saffron industry in Afghanistan.Afghanistan is the second biggest producer world saffron;and therefore,it is the second most significant producer and exporter of this product(ministry of agriculture and livelihood,2018).In comparison to other countries,Afghanistan can export a higher volume of saffron.Therefore,the impact of importing Afghan Saffron to foreign countries can bring an advantageous effect on the economic situation of the country.Even though this is the case,Afghanistan still,is not the leading distributor of saffron;therefore,the state could not wholly reap the benefits of controlling and determining the buying cost of saffron.After careful observation towards the marketing of the saffron brand,it can be easily identified that despite being the second largest contributor the barriers that hinder Afghanistan to progressively becoming the largest is the way in which saffron is,advertised,packaged and exported: throughout the first part of this thesis,the benefits of saffron is to be observed and discussed.Following this,evidence will be highlighting the trade barriers to identify and suggest relevant ways to foster improvement and encourage growth within the saffron economy.This paper is an applied study which will be testing the hypotheses;we used a descriptive survey method for data gathering.After the questionnaire,the SPSS software analyzed designing and testing the validity and reliability of it,findings of the research.This paper will include eighty participants,some which are among and involved with the production and exportation of saffron.The results concluded that the following;advertisement,package suitability,customization,caring about needs,global market preferences,appropriate price determination strategies,(specialized)training,notifying and informing saffron benefits and properties,building bridges with exporters in the foreign market.The paper argues that if allowed to Afghan saffron would steady grow and flourish within the global markets increasing demand for saffron,demonstrating Afghanistan's exportation and production potential for economic growth.This fluctuation has been reflected by the increase of saffron production,which from 2003 has more than doubled in size.This increase indicates that there is a strong potential to expand further the exportation and manufacture of saffron in Afghanistan.In recent years,the demand for saffron has been on the rise,the Afghanistan Ministry of Agriculture released a DAACCAR and surveys to show potential economic predictions in the saffron industry by observing the volume of employees,size of production,and share in GDP can grow extensively.Recommendations:We found that although saffron has given limited attention in Afghanistan,the market structure is in dire shape there are limited numbers of a player who controls saffron market price.The non-efficient market structure has produced a stagnated effect within the saffron exporting community;this has resulted in a market that has little to no competition between firms,creating undesirable performances and conducts in comparison to international standards.Building a high production cost poor quality goods and packaging.As a result,this sector is profoundly affected.Afghan firms tend to shy away from obtaining new technology;therefore,they are not able to apply the latest techniques and to improve their quality and standardize their product to an international level requirement.