Pakistan Experiencing Skyrocketing Tomato Prices
Tomato prices in Pakistan are increasing rapidly. The average wholesale price on November 21 reached a high of PKR 253 (USD 1.61) according to the Pakistani government, but markets report seeing prices as high as PKR 400 (USD 2.57) per kg. Prices have increased by over 200% compared to spring this year. This is a result of a unique combination of a domestic supply shortage and badly timed government policies.
Reasons for the Low Prices
Mid-November always sees some seasonal shortage in tomato supply, as the supply from the Balochistan province dries up. During this month, only tomatoes from the Swat province are available, whereas tomatoes from the Sindh province have yet to arrive in the market. This seasonal supply shortage usually dampens the prices slightly, but this year it is exacerbated by heavy rainfall, which damaged the crops. Tomato prices have been rising since early October.
Check detailed price data here: Pakistan Tomato Prices
Furthermore, many farmers complain that the current Pakistani government is not supporting them enough. They claim that the agricultural infrastructure is crumbling and, as a result, prices for many agricultural commodities have been rising rapidly. The government has banned the export of certain commodities, such as wheat, to control domestic prices and stocks.
Besides the domestic supply shortage, there is also a shortage of imported tomatoes. Normally, there are a lot of tomatoes being imported from India. However, recent political tensions concerning the contested Kashmir region have led to Pakistan and India closing their border. The Pakistani government stopped issuing import permits for tomatoes in 2016, but now the border has been completely closed as well. This closure has not only affected the price of tomatoes, but also the price of other fruits and vegetables. On top of this, the Pakistani government has restricted imports to only a few people, rather than allowing free imports.
Price Expectations
As tomatoes are a staple in Pakistani cuisine - they are often used in curries - the Pakistani government has pledged to import tomatoes from Iran to alleviate the shortages. A total of 4,000 tons are supposed to be imported, but so far only 989 tons have reached the market. The government assures that the prices will normalize soon, as more imports from Iran reach the market. The season for Sindh tomatoes is also expected to commence soon.
