Afghanistan: Weekly Market Report: Issue 297: Week 4 - May 2026

Country: Afghanistan

Source: World Food Programme

Please refer to the attached file.

Highlights

Exchange Rate and Trade Dynamics: During the fourth week of May, the Afghani exchange rate remained stable at AFN 63.8/USD, while remaining stronger than both last year and the three-year average, helping to moderate the impact of imported inflation on domestic markets. Market supply conditions remained generally stable, supported by ongoing domestic harvests and continued imports through regional trade corridors. However, transportation costs, regional trade uncertainties, and high import dependence continue to pose risks to market stability and contribute to localized price fluctuations.

Food Items: Overall, national average food prices remained relatively stable during the fourth week of May, with moderate week-on-week declines across major food commodities. However, compared to last year, most key food commodities continue to remain above year-ago levels, particularly wheat grain (+14%), wheat flour (high-price +9%; low-price +12%), rice (high-quality +38%; low-quality +28%), cooking oil (+4%), sugar (+25%), and salt (+10%). Meanwhile, pulses (-12%) and bread (-4%), remain below their respective levels from the same period last year. The higher year-on-year prices reflect increases recorded between Oct-25 and Mar-26 following border closures with Pakistan and the rerouting of trade through Iran and Central Asia. Since then, improved trade flows and market availability have gradually contributed to declining price levels.

Vegetables: Vegetable prices continued their seasonal decline, supported by increased domestic production and improved market availability. Tomato prices recorded a significant weekly decrease of 18.5%, while potato prices declined by 2.3%. In contrast, onion prices increased by 4.6%, partially reversing the declines observed in recent months and moving back toward more typical seasonal levels. Compared to last year, tomato prices remain 20% lower and onion prices 35% lower, while potato prices continue to remain substantially above last year’s level (+24%). Increased arrivals of seasonal produce from several provinces, continued to improve market availability and support downward price movements across major markets.

Non-Food Items: Diesel prices increased slightly during the week (+1.3%) and remained 14% above last year's level. Fertilizer prices remained broadly stable, with DAP increasing by 0.8% and urea by 0.3% compared to the previous week. Compared to last year, fertilizer prices continue to remain elevated, particularly for urea (+45%) and DAP (+16%), maintaining pressure on agricultural production costs. Improved seed and animal feed prices remained largely unchanged during the week.

Livestock and Labour Market: The price of a one-year-old female sheep increased by 6.0%, driven by stronger demand ahead of Eid-ul-Adha, when livestock purchases typically increase across the country. Meanwhile, labour market conditions remained weak during the week, with labour availability declining slightly to 1.9 days per week, compared to the previous week. Labour availability remains substantially below both last year (-20%) and the three-year average (-16%), reflecting continued constraints in employment opportunities and increased competition among casual labourers. ...