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Pakistan potato prices collapse after Afghan border closure

Pakistan is seeing a more than 70 percent decline in potato prices in domestic markets after the closure of border crossings with Afghanistan halted exports, according to traders and farmers. Pakistan closed the Torkham and Chaman crossings in October following clashes with Afghanistan over rising militant attacks. The ongoing trade suspension has created pressure on the local market, with Pakistan having recorded a trade surplus of more than US$750 million with Afghanistan in the last fiscal year.

Potatoes, Pakistan's largest vegetable crop by area and volume, have seen a price drop of up to 77 percent in recent weeks. Khalid Mehmood Khokhar, president of the Pakistan Kissan Ittihad (PKI), said the market is oversupplied, creating risks for the upcoming harvest. He stated, "The market conditions are very bad as it is oversupplied, which is risking the new crop." A 60-kilogram bag that previously sold for Rs 2,600, about US$9.30, is now failing to reach even its storage rental cost of Rs 600, around US$2.10.

Khokhar urged the government to resolve the border closure with Afghanistan, saying growers are facing heavy losses and are unable to recover production costs. He said, "Afghanistan is a big market for Pakistani potatoes. It is also a transit country for our exports to Central Asian countries as well as Russia."

Pakistan's commerce ministry spokesperson did not respond to requests for comment. Pakistan exports surplus volumes of potatoes to Tajikistan, Kazakhstan, Kyrgyzstan, Turkmenistan, Uzbekistan, and other markets via Afghanistan.

Pakistan harvested 9.4 million tons of potatoes from 386,000 hectares in the last fiscal year, up 12 percent from 8.4 million tons in the previous year. The Federal Committee on Agriculture targets 8.9 million tons for the 2025–26 Rabi crop season, running from October to April.

In Islamabad, trader Malik Nusrat Mahmood said he is concerned about slow demand while new crop volumes are arriving. He reported that the wholesale price of a 5-kilogram bag has dropped by as much as 60 percent to Rs80, less than US$1. He said, "Potato prices have witnessed a significant decline while the new crop has started hitting the market."

Source: Dunya News

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