In the mid-1990s about half of Afghanistan's land area was being used for grazing. The sheep provide wool and skins for clothing and flesh for meat. The farmers live in the fertile valleys or on the plain, wherever water is available for irrigation. Industrial crops include cotton, sugar beets, and sugarcane. Oilseed, nuts, and fruits, particularly grapes, are also important, and large quantities of vegetables, especially potatoes, are grown.
Agriculture contributes more than half of the gross domestic product.
Aided by loans and grants from the World Bank and other sources, Afghanistan's government has tried since World War II to improve economic conditions. With aid from the Soviet Union, the Afghan government built the Nangarhar Canal near Jalalabad in the south. Afghanistan has little industry. Handworkers in cottage industries produce woven, embroidered, metal, pottery, and wooden goods and utensils. Cottage industries account for some 8 percent of the gross domestic product, while manufacturing industries account for only about 4 percent.