Technology companies that gave a positive connotation to the word “disruption” for radically transforming traditional markets globally have not been able to make a dent in Pakistan’s exploitative fruit and vegetable supply chains, which remain largely controlled by entrenched middlemen and constrained by restrictive government regulations.

Industry observers say that despite the rapid expansion of digital marketplaces and quick-commerce services in urban Pakistan, the country’s farm-to-fork system still revolves around traditional wholesale markets, where commission agents dominate trade flows and price formation. Growers’ representatives argue that online platforms have so far captured only a marginal share of the overall produce trade. Sindh Abadgar Board (SAB) President Mahmood Nawaz Shah recently said that digital platforms could handle no more than 2-3% of fruit and vegetable volumes, leaving the broader supply chain largely unchanged.

According to Shah, the structure of the market itself limits disruption. Wholesale trading of fruits and vegetables is governed by provincial legislation commonly referred to as the Market Produce Act, which requires buying and selling to take place within officially notified wholesale markets, commonly known as Sabzi Mandis. These markets operate under government-appointed market committees and effectively channel most large-scale trading through designated locations.

As a result, the system continues to revolve around commission agents, known locally as arthis, who provide credit to farmers and control access to trading space in wholesale markets. Growers often rely on advances from these intermediaries to finance production, which binds them to sell their harvest through the same dealers at predetermined prices. The structure, farmers say, creates a cycle of dependence that digital platforms have not yet been able to break.

Pakistan’s market infrastructure also remains limited relative to population size. Karachi, a city of more than 20 million people, operates essentially a single large wholesale fruit and vegetable market spread over roughly 100 acres, said Nawaz. Growers’ bodies argue that such limited infrastructure concentrates trading power and restricts competition.

In contrast, comparable international cities operate multiple wholesale produce markets with extensive storage and logistics facilities, enabling more efficient distribution and price discovery, he added.

Technology companies, however, say their platforms are gradually building alternatives that could improve efficiency in the long run. Digital marketplaces and quick-commerce operators argue that technology-driven procurement, cold-chain logistics and direct sourcing models can reduce waste, improve product quality and eventually provide better returns to farmers.

FoodPanda Pakistan’s Q-commerce Director Syed Taha Magrabi said the long-term sustainability of the farm-to-fork model depends heavily on reducing wastage within the supply chain.

“The sustainability of the farm-to-fork model rests on wastage management,” he said. While home delivery logistics may cost more than bulk transport to traditional wholesale markets, platforms can offset these costs by reducing spoilage and eliminating multiple layers of middlemen commissions.

By maintaining a controlled supply chain and cutting unnecessary intermediaries, he said, platforms can extend shelf life and reduce shrinkage. The resulting efficiencies allow companies to offer competitive retail prices while improving farm-gate returns. “When waste is reduced, the savings are shared between a higher farm-gate price, the net value a producer receives for their crops or livestock directly at the farm or nearest market, for the grower and a competitive retail price for the consumer,” he said.

Magrabi said investment in cold-chain infrastructure is central to this approach. According to him, each Pandamart facility is equipped with cold storage systems designed to maintain the quality of fresh produce and meat products.

“We utilise refrigerated trucks to transport sensitive products from the mandi to our dark stores,” he said. “This ensures that fresh vegetables and meat remain in a temperature-controlled environment from arrival until delivery.”

Such systems, he added, help prevent bacterial growth in meat and reduce wilting in vegetables, problems commonly associated with traditional open-air markets. Maintaining a continuous cold chain improves food safety and extends shelf life for consumers.

Despite these initiatives, Magrabi acknowledged that digital platforms still handle only a small portion of the country’s overall fruit and vegetable trade. “The transition from traditional mandis to digital platforms is currently in a high-growth phase rather than a mature state,” he said. While absolute volumes remain a fraction of national output, platforms are gradually gaining traction within the organised retail segment of major urban centres.

He noted that middle-income class consumers in cities increasingly value consistency in quality and price, which is driving the adoption of online grocery services.

Analysts say the gap between technology’s potential and its actual impact highlights deeper structural issues in Pakistan’s agricultural marketing system. Regulatory barriers, fragmented farm production, weak cold-chain networks and limited access to agricultural credit continue to reinforce the traditional mandi-based model. For digital platforms to scale significantly in fresh produce trading, experts say reforms may be required in market licensing, private-sector participation in wholesale markets and investment in logistics infrastructure.