Taliban earns up to $470 milllion this year from opium trade - U.N.

[Turborama]

What was that about the "War on Drugs"?

By Luke Baker

LONDON (Reuters) - The Taliban has earned up to $470 million from the Afghan opium trade this year alone, the United Nations said on Thursday, money that is being used to finance the insurgency against U.S. and Afghan forces.

As well as the income earned from directly taxing farmers' output and from levies on opium processing and on trafficking the drug, there is evidence the Taliban is hoarding opium stocks to prop up prices, the U.N. said in a report.

This suggests the Taliban may not be overly worried in the short-term by U.S-led efforts to eradicate poppy fields because lower supply may end up lifting prices, potentially allowing the militant movement to increase its earnings.

"Despite the drop in opium cultivation, production and prices, the Taliban and other anti-government forces are making massive amounts of money from the drug business," the U.N.'s Office on Drugs and Crime said in its 2008 Afghan opium survey.

This revenue rise comes at a time when the Taliban is stepping up attacks throughout Afghanistan, especially in the south and east, across the border from Pakistan, where the U.S. military says al Qaeda and Taliban cells are now based.

The U.N. report estimated the Taliban earned $50-$70 million from imposing a 10 percent charge, called ushr, on economic activities such as opium farming this year, as well as $200-$400 million from levies on opium processing and heroin trafficking.

"With so much drug-related revenue, it is not surprising that the insurgents' war machine has proved so resilient, despite the heavy pounding by Afghan and allied forces," Antonio Maria Costa, UNODC executive director, said in the report.

The income -- the first time the United Nations has put such a high figure on the Taliban's revenue stream -- does not include money the Taliban is believed to be making from exports of cannabis, another widely produced Afghan crop.
http://in.reuters.com/article/southAsiaNews/idINIndia-36744320081127?feedType=RSS&feedName=southAsiaNews&pageNumber=2&virtualBrandChannel=0">Continued

It's a couple of says old, apologies if it's a dupe...

[Seedersandleechers]

1. Is that all?

They could use a good business agent.:sarcasm:

[amdezurik]

7. Poppy Bush and the CIA could help

them boost their profit margin, lots of practice...

[Idealism]

2. You would think for having the opium market cornered they would be making more...

[TheWraith]

3. Problem is that they're vastly overproducing.

They're stockpiling to keep the price up, but Afghanistan alone is producing roughly 2x the known opiate demand of the entire planet. So unless there's a lot of addicts we don't know about in China and India, the excess supply is going to drive down pricing.

[Idealism]

4. I doubt demand will be a problem in the short term

Recessions tend to make people want to abuse more, and this is already a global turn down

[Alcibiades]

5. And if business ever goes south

They can have Paulson bail them out.

[merh]

6. just look what they did with the seed money the US gave them

in 2001.