Afghanistan: Weekly Market Report: Issue 294: Week 1 – May 2026

Country: Afghanistan Source: World Food Programme Please refer to the attached file. Highlights Exchange Rate and Trade Dynamics: During the first week of May, the Afghani exchange rate remained relatively stable at AFN 64. 5/USD, remaining stable compared to the previous week but standing stronger than the same period last year and the three-year average. Domestic markets continued to function with generally adequate commodity availability, supported by domestic harvests and sustained inflows through western and northern trade corridors and rail networks. While overall market conditions remained relatively stable, transportation costs and regional trade uncertainties continue to pose risks to market stability. Increased dependence on alternative import routes also continues to expose domestic supply chains to external market and geopolitical risks, contributing to localized price volatility across provinces. Food Items: Overall, national average food prices remained broadly stable during the first week of May, with mostly limited week-on-week changes across key commodities. Wheat grain (-1. 8%), wheat flour (high-price -0. 4%; low-price -0. 5%), cooking oil (-0. 4%), and pulses (-0. 5%) recorded slight declines, while low-quality rice (+1. 0%), sugar (+7. 3%), salt (+0. 7%), and bread (+0. 1%) increased modestly during the week. Compared to last year, most major food commodities continue to remain significantly elevated, particularly wheat grain (+20%), wheat flour (high-price +12%; low-price +16%), rice (high-quality +44%; low-quality +27%), cooking oil (+8%), and sugar (+31%). Vegetables: Vegetable prices declined during the first week of May. Tomato (-7. 6%), potato (-11. 6%), and onion (-5. 0%) prices declined week-on-week, reflecting improved seasonal availability and increased market supply. However, tomato and potato prices remain substantially above last year’s levels (+34% and +51%, respectively), while onion prices continue to remain significantly below last year (-36%). Despite recent improvements in supply conditions, vegetable markets continue to face volatility linked to regional trade disruptions, transport costs, and fluctuations in cross-border flows. Non-Food Items: Diesel prices declined slightly during the week (-1. 0%), though prices remain above last year (+12%) amid continued regional supply constraints and global fuel price pressures. Fertilizer prices (DAP and Urea) remained relatively stable compared to last week. However, on a yearly basis, fertilizer prices continue to remain significantly elevated (+15% for DAP and +43% for Urea), maintaining pressure on agricultural production costs during the ongoing cultivation season. Other non-food commodities, mainly improved seed and animal feed, remained stable with minor weekly fluctuations. Labour Market: Labour availability improved slightly to 1. 9 days per week in the first week of May (+2. 4% from last week), though it remains considerably below last year (-20%) and the three-year average (-17%). Seasonal labour opportunities continue to improve gradually in some areas; however, labour market conditions remain weak overall due to limited employment opportunities and increased labour competition.

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