Prices of essential commodities, such as vegetables and pulses, have witnessed a significant surge, with wheat and flour reaching historical highs. This surge has led to a nearly doubled cost for these commodities, causing concerns for consumers.
Escalating Vegetable Prices
| Vegetable | Previous Price Range (Rs./kg) | Current Price (Rs./kg) |
|---|---|---|
| Karela | 80-100 | 200 |
| Bhindi | 150-200 | 300 |
| Tomatoes | 60 | +20 |
| Onions | 55 | +20 |
| Potatoes | 90-100 | 90-100 |
- Karela: Previously priced between Rs. 80-100 per kg, it has experienced a substantial increase and is now sold at Rs. 200 per kg.
- Bhindi: Similarly, Bhindi’s price has risen significantly from Rs. 150-200 per kg to Rs. 300 per kg.
- Tomatoes and Onions: Both tomatoes and onions have witnessed an increase of Rs. 20 per kg in their prices.
- Potatoes: Despite experiencing a bumper production, potatoes have maintained their previous price range of Rs. 90-100 per kg.
Unusual Price Hike Amidst Hot Summer
The current price hike during the hot summer season is quite unusual. Typically, vegetable prices are expected to be lower during this time due to higher production and faster spoilage caused by increased temperatures. This price surge is surprising as there is no extraordinary demand, such as during Ramadan or other festive occasions.
A market consultant stated, “Wheat and fertilizers are not the only commodities being smuggled. Vegetables are also exported under the radar to Afghanistan whenever smugglers get the chance, and this has contributed to the rise in prices.” Additionally, the consultant mentioned that last year’s floods diverted attention away from vegetable cultivation, further impacting prices.
Pakistan’s vegetable exports have witnessed a significant increase, reaching 1.276 million tons valued at $283 million between July and May 2023. In comparison, the same period in the previous fiscal year saw 874,231 tons valued at $291 million. Potato production has increased by 4.8 percent to 8.31 million tons, while onion production dropped by 18 percent to 1.68 million tons.
Persistently High Retail Prices of Pulses
Despite a fall in the pulses market following the announcement of an IMF deal after Eid, retail prices have remained consistently high. Items like daal mash, masoor, and moong experienced a decrease in wholesale prices, yet retailers continue to charge the same elevated prices.
| Type of Daal | Previous Price (Rs./kg) | Current Price (Rs./kg) | Retail Price (Rs./kg) |
|---|---|---|---|
| Daal Mash | – | 425 | 520 |
| Masoor | – | 195 | 280 |
| Moong | – | 225 | 280 |
- Daal Mash: The price has dropped to Rs. 425 per kg from its previous price, and the retail price remains at Rs. 520 per kg.
- Masoor: The price has decreased to Rs. 195 per kg, while the retail price stands at Rs. 280 per kg.
- Moong: The price has decreased to Rs. 225 per kg, and the retail price remains at Rs. 280 per kg.
The Karachi Wholesalers Grocers Association (KWGA) President, Rauf Ibrahim, explained that traders imported pulses in bulk when the State Bank of Pakistan eased LC (Letter of Credit) restrictions. This influx of imported pulses led to a decline in wholesale prices.
Pulses imports in Pakistan surged to 1.252 million tons valued at $887 million between July and May 2023, in comparison to 0.84 million tons valued at $568 million during the same period in the previous fiscal year.
