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Initial Market Price Bulletin for the month of June 2013 (Reported in July 2013) HIGHLIGHTS:

• Average wheat grain retail price in the main cities of the country was decreasing during July 2011- July 2012. However, it was

increasing from August 2012 through March 2013. On the international market, a decreasing trend of wheat price was

continuously observed from October 2011 to May 2012, but has been increasing from June 2012 to March 2013 with a sharp

decrease in April 2013. The current wheat prices are significantly higher by 13.6% in comparison to the same time last year

(June 2012), while slightly (3.2%) higher than last 5-year average.

• Wheat flour: average price was also decreased during July 2011 - May 2012, but was increasing in the months of June 2012 –

March 2013 with slight decrease during April – June 2013 in the main urban cities of Afghanistan. The current wheat flour

average prices are significantly higher by 25.4% and 13% compared the same month last year (June 2012) and the 5-year

average price of the same months.

• Rice is considered as 2nd

main staple food in Afghanistan. The current average price of Rice (Low Quality) is significantly higher

by 30% compared to the same month last year (June 2012) and 32% higher compared to the same months of last 5-year

average. The current price of high quality rice is also higher by 29% compared to the same month last year (June 2012) and

32% compared to 5-year average price of June months.

Terms of Trade (ToT):

Casual Labor and Wheat (ToT): The Terms of Trade (ToT)

between casual Labor and wheat is a proxy indicator or the

purchasing capacity of households relying on casual labor as

main income, and purchase of wheat in the market. This ToT

reveal how many Kilograms of wheat can be purchased with

one day of casual labor wage, but do not say how many days

a month a laborer can get to cover the family food needs.

• Wage labor-Wheat ToT average for the reporting

month was 16.4 Kgs. On average this ToT

significantly improved (8.5%) from May – June

2013. The improvement was based on decrease in

Wheat price (5.2%) and increase in labor wage

(2%).

• In comparison to the same month one year ago

(June 2012), this ToT deteriorated by 10.8 %.

• On the two years comparison (June 2011), this ToT

slightly deteriorated by 1.8 %.

• Compared to the 5-year average of the same months (June 2008, 2009, 2010, 2011 and 2012), this ToT improved by 10%.

Casual Labor and Wheat Flour (ToT): The Terms of Trade (ToT) between casual Labor and Wheat Flour is a proxy indicator or the

purchasing capacity of households relying on casual

labor as main income, and purchase of Wheat Flour in

the market. This ToT reveal how many Kilograms of

Wheat Flour can be purchased with one day of casual

labor wage, but do not say how many days a month a

laborer can get to cover the family food needs.

• Wage labor-Wheat Flour ToT average for the

reporting month was 12 Kgs of wheat flour. The

average of this ToT improved by 5.1% from May –

June 2013. The reason for improvement was

decrease in wheat flour price (3.5%) and increase

in labor wage (2%).

• Compared to the same month one year ago (June

2012), this ToT significantly deteriorated by 19%.

• On the two years comparison (June 2011), average

of this ToT slightly deteriorated by 5%.

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• Compared to the 5-year average price of the same months (June 2008, 2009, 2010, 2011 and 2012), the average of this ToT

improved by 5%.

Sheep and Wheat (ToT): The Terms of Trade between

a one year old female sheep and Wheat is a proxy for

the purchasing capacity of those households that are

mainly reliant on income from livestock (pastoralists).

It says how many kilograms of Wheat can be obtained

when selling a one year old female sheep.

• Sheep-Wheat ToT for the reporting month was

293 Kgs of wheat against one year live female

sheep. The average of this ToT slightly improved

by 3.5% from May – June 2013. Main reason for

the improvement was decreased Wheat price.

• Compared to the same month one year ago (June

2012), this ToT deteriorated by 3.2%.

• On the tow years comparison (June 2011), this

ToT improved by 6.4%.

• Compared to 5-year average of the same months

(June 2008, 2009, 2010, 2011 and 2012), this ToT improved by 12%.

Sheep and Wheat Flour (ToT): The Terms of Trade

between a one year old female sheep and Wheat Flour

is a proxy for the purchasing capacity of those

households that are mainly reliant on income from

livestock (pastoralists). It says how many kilograms of

Wheat Flour can be obtained when selling a one year

old female sheep.

• Sheep-Wheat Flour ToT for the reporting month

was 220 Kgs of wheat flour against one year live

female sheep. The average of this ToT slightly

improved by 0.4%. This improvement is the result

of decrease in Wheat flour price.

• Compared to the same month one year ago (June

2012), this ToT significantly deteriorated by

10.5%.

• On the two years comparison (June 2011), this

ToT slightly improved by 4.2%.

• Compared to 5-year average of the same months (June 2008, 2009, 2010, 2011 and 2012), this ToT was improved by 8.5%.

Retail Price of Wheat Grain in Main Urban Cities:

• The monthly average price of wheat in the main urban markets was 20.7 Afs/Kg. Compared to the past month (May 2013), the

average price decreased by 5.2%. The highest decrease occurred in Jalalabad (8.1%), Mazar (7.9%), Hirat (7.4 %), Maimana (5%)

and Kandahar (2.8%). Main reason for the decrease was harvesting time and maintained supply of Wheat flour from Pakistan.

The variation in other main cities was within a normal limit (1.6% - 1.9%).

• Compared to the same month one year ago (June 2012) the average price significantly increased by 13.6%. The highest increase

occurred in Kabul (27.2%), Kandahar (19.2%), Nili (14.6%), Jalalabad and Hirat (14%). The variation in other main cities was

normal (2.7% - 9.4%)

• On the two year comparison (June 2011), the average price was higher by 7%.

• Compared to 5-year average price of the same months (June 2008, 2009, 2010, 2011 and 2012), the price slightly increased by

3.2%.

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Retail Price of Wheat Flour in Main Urban Cities:

• The monthly average price of wheat flour

in main urban markets was 28.4 Afs/Kg in

the reporting month (June 2013), which

shows 3.5% decrease compared to the past

month (May 2013). Main reason for

decrease was harvesting time and

maintained supply of imported wheat flour

from Pakistan.

The highest decrease occurred only in

Jalalabad (7.7%). The variation in other

main cities was normal (-3.5% - 3.7%).

• Compared to the same month one year

ago (June 2012), the average price

significantly increased by 25.4%. The

highest increase was noticed in Hirat

(40%), Maimana (37%), Mazar (31.7%), Nili

(31%), Kandahar (16.5%), Faizabad (14.1%)

and Jalalabad (8.4%). Main reason for the increase was increased global Wheat price and depreciation of Afghani currency

against US dollars.

• Compared to the same month two years ago (June 2011), the average price of Wheat Flour increased by 9.1%.

• Compared to 5-year average price of the same months (June 2008, 2009, 2010, 2011 and 2012), the current average price

increased by 13.1%. The highest increase occurred in Nili (24.2%), Hirat (21.3%), Mazar (20.6%), Maimana (19%) and Kabul (13.5

%). The variation in Kandahar, Jalalabad and Faizabad was within a normal limit (-8.1% - 6%).

Retail Price of Rice (High Quality) in Main Urban Cities:

• The monthly average price of Rice (High Quality) was 85.6 Afs/Kg in the reporting month (June 2013); the current price

increased by 6% compared to previous month (May 2013). Main reason for the increase was increased demand by consumers

due to the upcoming month of Ramazan. • Compared to the same month one year ago (June 2012), the average price significantly increased by 29%. Main reason for the

increase was increased Rice price in neighbouring countries and depreciation of Afghani currency against US dollar. • Compared to the same month two years ago (June 2011), the average price significantly increased by 50%. • Compared to 5-year average price of the some months (June 2008, 2009, 2010, 2011, 2012), the average price increased by

32%.

Retail Price of Rice (Low Quality) in Main Urban Cities:

• The monthly average price of Rice (Low

Quality) was 46.5 Afs/Kg in the reporting

month (June 2013); which shows slight

decrease by 1%.

• Compared to the same month one year

ago (June 2012), the average price

significantly increased by 30%. Main

reason for the increase was increased rice

price in neighboring markets and

depreciation of Afghani currency against

US dollars.

• Compared to the same month two years

ago (June 2011), the average price

significantly increased by 39%.

• Compared to 5-year average price of the

same months (June 2008, 2009, 2010,

2011 and 2012), the average price increased by 32%.

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Retail Price of Cooking Oil in Main Urban Cities:

• The monthly average price of Cooking Oil was 80.8 Afs/Kg in the reporting month (June 2013). There is no change of the current

price with previous month (May 2013). The variation in all main cities was normal (-3% - 0%).

• Compared to the same month one year ago (June 2012), the average price slightly varied within a normal limit (3% decreased).

The highest decrease occurred only in Kandahar (12%). The variation in other main cities was normal (-9% to 5%).

• Compared to the same month two years ago (June 2011), the average price slightly decreased by 4%.

• Compared to 5-year average of the same months (June 2008, 2009, 2010, 2011 and 2012), the average price increased by 8%.

Market Watch:

Source: WFP/VAM market data from Afghanistan main cities (Kabul, Kandahar, Mazar, Jalalabad, Faizabad, Hirat, Maimana and Nili)

Vulnerability Analysis and Mapping (VAM) – World Food Programme (WFP), Afghanistan