Punjab’s new price control dept launches market analysis report

LAHORE: The newly established Price Control and Commodities Management Department in Punjab has launched its exclusive “Food in Focus: Market Analysis Report” to stabilise essential commodities’ prices.

According to a copy of the report obtained by this correspondent, the department has carefully analysed the supply and demand dynamics of five key commodities: potatoes, onions, tomatoes, gram and lentils. The report provides in-depth insights into the challenges faced by local markets and proposes strategies to balance supply and stabilise prices.

The analysis of the potato market reveals a complex scenario. While the current supply is supported by local cold storages in Okara and Sahiwal, along with imports from Khyber Pakhtunkhwa and Balochistan, potato prices are 8.46 percent higher than they were the last year. The department projects that prices will remain elevated until fresh crops from districts such as Soon Valley, Gujranwala, and Sialkot become available after November 15. These additional supplies are expected to stabilise prices, with the department recommending that the Agriculture Department’s Extension Wing should work to encourage farmers to increase potato cultivation to ensure better future yields.

Regarding onions, the report highlights a significant shortfall in domestic production, which has led to a reliance on imports from Afghanistan and Iran. Domestic onion production has risen slightly, but a decrease in cultivated area has strained supply. Currently, onions are mainly sourced from Afghanistan (45pc) and Balochistan (30pc), and prices are expected to remain high until December 2024, when the Sindh crop is expected to arrive. The department has advised district administrations to work closely with commission agents in Afghanistan and Balochistan to ensure steady supply and stable pricing in the coming months.

In the tomato market, Punjab is currently in an off-production phase, relying heavily on imports from Khyber Pakhtunkhwa and Afghanistan. Due to the ongoing off-season, tomato prices are under pressure, a trend expected to persist until December 2024. However, the department forecasts that the situation would improve once tomatoes from Sindh begin to enter the market. To manage the supply chain effectively, the department has recommended that commission agents establish early contracts to secure timely imports and maintain price stability.

The gram market is also facing challenges due to a gradual decline in domestic production, leading to increased reliance on imports. With sowing season for the new crop about to commence, the department has urged the Agriculture Department to expedite extension services to encourage farmers to expand cultivation.

Although the international prices of gram remained high but it has shown a declining trend since last month. The department has suggested that importers take advantage of falling international prices and place large orders to reduce the gap between supply and demand in local markets.

Similarly, prices for lentils (Mash) are expected to remain stable, with fresh crops from Myanmar set to arrive in early 2025, potentially easing pressure on supply and prices. According to the assessment on lentil Masoor, due to arrival of new crop of Masoor from Canada, international prices are showing decreasing trend, similarly local prices are also showing decreasing trend. Moreover, sowing season of Masoor would commence by 15th of November, so Agriculture Department may expedite extension services to encourage farmers to enhance cultivation area of Masoor. Prices of Masoor are expected to remain stable in the local markets subject to stability in international prices. The department has advised that importers should expedite import orders keeping in view of low international prices. According to the report, local crop of lentl Moong from Punjab is arriving in local markets but unfortunately this year crop has been damaged due to rainfalls, therefore, prices of moong could not show significant decrease. It is expected that prices of Moong are likely to remain same because prices of other pulses -- Mash and Masoor -- have declined, therefore, the demand of Moong is expected to reduce, and ultimately prices are expected to remain stable. However, district administrations may encourage dealers of pulses to arrange maximum supply of Moong as per requirement. The administrative secretary of the Punjab Price Control and Commodities Management Department Ajmal Bhatti, while talking to this scribe, said that in these comprehensive assessments and recommendations, his departments is playing a critical role in fostering market stability. Bhatti said that by closely monitoring supply chain and providing strategic advice, the department aims to ensure that consumers and producers alike benefit from a more resilient and predictable market for essential commodities.