Country: Afghanistan Source: World Food Programme Please refer to the attached file. Highlights Trade Flows and Market Conditions: During the first week of April, national average prices for most food commodities remained broadly stable with minor week-on-week changes. However, notable fluctuations were observed at the provincial level, with some areas recording increases while others experienced declines, reflecting localized supply and availability challenges. Market conditions remain stressed due to the continued closure of border crossings with Pakistan and disruptions to imports of transit goods through Iran. These constraints continue to limit supply and contribute to price pressures, with current prices still significantly higher than in the period prior to the border closures. Imports via western and northern corridors continue to operate normally, facilitating the inflow of key commodities. Exchange Rate and Food Basket: The Afghani exchange rate stands at AFN 64.9/USD, showing a slight depreciation from the previous week but remains stronger than the same period last year. Despite relative exchange-rate stability, the cost of the food basket remains elevated, reflecting sustained high prices for key commodities. Food Items: Overall, national average food prices showed mixed but generally minor changes week-on-week. Wheat flour and cooking oil prices remained stable. Rice and pulses registered slight declines, while sugar prices increased moderately during the week. At the same time, most food commodity prices remain significantly higher than last year, particularly for wheat grain, cooking oil, rice, and sugar, indicating sustained market pressure. Vegetables: Vegetable prices continued to rise sharply, driven by supply constraints and high demand, and remain significantly higher year-over-year. Decreased supply from Iran and halt of imports from Pakistan contributed to the high prices of these vegetables. While onion prices have declined from last year, the high prices of tomatoes and potatoes have significantly affected affordability and access for vulnerable households. Non-Food Items: Diesel prices increased slightly from last week by 5.4% and show a significant 15% increase from last year, mainly due to supply constraints from Russia and Central Asian countries and the overall pressure from the global rise in fuel and energy prices. Similarly, fertilizer prices also show a gradual upward trend, with DAP increasing by 3.2% and Urea by 6.3% and showing a 15% increase year-on-year. The declining availability due to low supply from International markets and higher prices is posing affordability challenges for vulnerable farmers. Labour Market: Labour availability remained low at 1.6 days per week and remains significantly below last year and the three-year average by 29% and 24%, respectively. While seasonal improvements are expected as summer progresses, labour supply pressures persist, partly due to increased competition from returning populations. Casual labour wages remained stable, but overall purchasing power remains constrained by high commodity prices.

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