Rains spark food and vegetable inflation in Karachi

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Prices of fruits and vegetables have almost doubled in Karachi as devastating rains cause bottlenecks and long suspensions in key supply routes leading to the city. While these blockages have stopped the supply of various fruits and vegetables, prices of available stocks have registered increases of 100 per cent in some cases, sources told Profit.
Both retailers of fruits and vegetables are charging 50 to 100 per cent increased prices from poverty stricken masses, as compared to the prices of the commodities recorded few days ago. The price of onions particularly, already increased, is likely to face more jumps as almost 90 per cent of the onion crop in Sindh has been devastated after the prolonged and heavy rains, sources in the retailers market said. Beside losses to growers and the price hike affecting millions of consumers, damage to the onion crop is also going to cause over $ 60 million to the country’s exporters, sources said, adding Sindh was expected to produce almost 275,000 tonnes onion during this season. Currently, onion and tomato in the city are being supplied from Balochistan at comparatively higher price.
As heavy rains continue in various parts of the province, the aftermath has caused retail prices of tomatoes, potatoes, lemons, cucumbers, etc, to record increases of between 10 and 100 per cent, much to the dismay of consumers. Coupled with rain and flooding related hardships in their own lives, high prices of essential kitchen items are an unbearable burden on much of the population. In fruits, prices of apples, mangoes, bananas, grapes, etc, have also skyrocketed. Mangoes, which were soled at Rs100 per kilogram recently, are now available at Rs200/kg, while bananas and apples are also being soled with the enhanced charges of Rs50-60/kg in the retail market. Interestingly, retailers demanding inflated prices are also charging new prices on perishable items produced/cultivated in the city’s outskirts like Malir and Thatta. Small bunches of coriander, produced in the city as well, are being sold at Rs15-20 against the previous prices of Rs5-10.
Talking to Profit, Zamir Hassan, a fruit retailer in Gulistan-e-Johar, said after climatic changes in interior Sindh brought heavy rains, fruit prices in New Subzimandi at Super Highway have increased by four times, and yet more increase is on the cards as supply from rest of the country has not been restored. “We are charging the people as per the cost of fruits at wholesale market,” he said. In addition to the issue of abrupt price increases in the retail market, unrestored supply has caused fruit and vegetable stocks in Karachi’s wholesale markets to reach alarmingly low levels, prompting fears of further price jumps, sources in the wholesale market said. “Available vegetables and fruits are not enough to meet the demands of the city in the next couple of days,” they added.
Talking to Profit, Waheed Ahmed, former chairman All Pakistan Fruit Vegetable Exporters Importers and Merchants Association, said damage to 90 per cent of the onion crop in Sindh has almost stopped export of the vegetable. Such problems are likely to cause approximately $70 million in trade losses. He also said 40,000 tons of onion have been made available from Balochistan since the beginning of the current season in June. Exporters depend on the onion crop to meet the rest of their export orders between September and February. According to Waheed Tando Allahyar, Thatta, Nasrpur, Mirpurkhas, Kunri and Thana Bola Khan produced about one million tons of onion every year, fulfilling 50 per cent of the local demand, while meeting 80 to 90 per cent of the export target.