Karachi — The local vegetable market in Pakistan has witnessed a dramatic drop in tomato prices. The cost of tomatoes, which sold for Rs 500 per kilogram just 15 days ago, is now down to just Rs 50 per kilogram following the arrival of Sindh’s new harvest. This situation highlights the fundamental issues within the country’s agriculture and supply chain sectors.
Reasons for Extreme Price Swings:
- The Supply Gap: Earlier, there was a gap of about one month between the end of the Quetta harvest and the start of the Sindh harvest. During this period, Karachi’s demand was met by expensive Iranian tomatoes, leading to prices reaching the extreme level of Rs 500 per kg due to limited supply.
- Harvest Surge: Now, with Sindh’s tomatoes flooding the market, the supply is so overwhelming that a 14 kg crate of tomatoes sold for as low as Rs 600 today.
The Farmer’s Dilemma:
The irony is that the farmer’s share of that Rs 600 crate is only Rs 100, an amount that is expected to drop further as supply increases. Experts warn that “increasing production is the ruin of the farmer,” as surplus produce prevents the farmer from even covering their costs.
Need for Value Addition:
Experts argue that the only way to break this cycle of extreme price instability is through Value Addition. To meet the government’s objective of boosting exports, special attention must be given to every link in the supply chain, from production to the final consumer.
While the Prime Minister announced the “Udaan Pakistan” (Flight Pakistan) plan a year ago, the specific strategy for integrating stakeholders into this improved supply chain has yet to be formalized.
