Grain market improves in Afghanistan after harvest begins
Afghanistan’s June food market improved as new harvests and stable trade reduced wheat, rice, sugar, vegetable oil and pulse prices. However, imported goods remain costlier year-on-year, while rising fertilizer and diesel costs, import dependence and external trade risks continue threatening long-term food price stability.
Afghanistan’s food market improved in June as the arrival of the new harvest and more stable trade flows increased supplies. According to the WFP, average prices for wheat grain and wheat flour declined, easing pressure on consumers.
In addition to wheat, prices for imported rice, vegetable oil, pulses, sugar, tomatoes, and potatoes also fell during the month. However, imported commodities remain significantly more expensive than a year ago due to earlier trade disruptions, high transportation costs, and the country’s heavy reliance on imports.
Despite lower food prices, production costs for farmers remain high. Fertilizer prices continued to rise because of seasonal demand and elevated import costs, while diesel prices increased to AFN 65.7 per litre in June.
The WFP noted that regional trade conditions improved during June, particularly along the western and northern trade corridors. Nevertheless, Afghanistan still depends on alternative transport routes that increase delivery times and the cost of importing food, raw materials, and agricultural inputs.
Analysts warn that the market remains vulnerable to external shocks. Global commodity price fluctuations, regional instability, and potential cross-border trade disruptions could put renewed pressure on domestic food prices, particularly after the main harvest season.
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Source : Ukr Agro Consult
