Food Inflation Soars in Pakistan Amidst Drought-Weakened Harvest

Strategic Insights -

Heavy monsoon rains and devastating export activity have plunged Karachi's vegetable markets into chaos, fueling a sharp increase in food prices nationwide. Tomatoes, once priced at Rs100-150 per kilogram, are now selling at a staggering Rs200, while onions have more than doubled in price to Rs80 per kilogram. The price of green onions has skyrocketed to Rs500-600 per kilogram, a 67% surge from its previous value. Meanwhile, the cost of wheat and flour continues to rise, with a 10kg wheat bag in Karachi now priced at Rs660, up from Rs640 at the start of the month.

Key Takeaways:

  • The prices of tomatoes, onions, and green onions have increased by 100%, 33%, and 67%, respectively, within a short period.
  • The prices of wheat and flour have continued to rise, with a 10kg wheat bag in Karachi now priced at Rs660.
  • The 20kg flour bag is selling for Rs1,480-1,800 nationwide, a 10% increase from previous prices.
  • The weaker-than-expected harvest and diversion of stocks have contributed to the sharp price increase of multiple food staples.
  • Analysts warn that the combined effect of price hikes in vegetables, pulses, and wheat could intensify broader inflationary pressures in the coming weeks.
  • The livestock and poultry sectors have consumed between three and four million tonnes of wheat, leaving a tight supply available for human consumption.
  • Pakistan's wheat crop this year produced an estimated 23 million tonnes, falling short of the original forecast of 27 million tonnes.

Statistics:

  • Price of tomatoes: Rs200 per kilogram (up from Rs100-150 earlier)
  • Price of onions: Rs80 per kilogram (up from Rs50-60 earlier)
  • Green onions price surge: 67% (from Rs300 to Rs500-600 per kilogram)
  • Price of wheat and flour:

+ 10kg wheat bag in Karachi: Rs660 (up from Rs640 at the start of the month)

+ Nationwide average 10kg wheat bag: Rs709

+ Nationwide average 20kg flour bag: Rs1,480-1,800

+ Nationwide average fine flour: Rs97.53 per kilogram

Sources:

  • Unnamed news article ( exact date of article not specified)
  • Sensitive Price Index (SPI) for the week ending August 21