Onion export: Government bans trade via land route

Federal government decides to ban export of onions in an attempt to stabilise prices in the domestic market.


Kashif Hussain January 05, 2011

KARACHI: The federal government has decided to ban the export of onions via land route in an attempt to stabilise prices in the domestic market.

According to an official of the federal food ministry, exporters have been informed about the decision before hand and a notification will soon be issued.

All Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association’s former vice chairman Aslam Pakhali confirmed that the decision had been made and said that due to a shortage created by bad onion crop in India, Pakistani exporters began to export onion to India but now after the decision by the government exports to India and Afghanistan would soon come to a halt. However, exports to high-value markets would continue via the sea route.

Pakhali also said that even though the decision has been taken, still 250 trucks of onion are being exported to India per day through Wagha border while around 60 to 85 trucks of union are being exported through the sea route from Karachi.

Currently, the price of onion is Rs1,000 to Rs1,200 per maund compared to Rs600 per maund last year and with a ban on export via land route onion prices in the local market are expected to decrease to Rs20 per kilogramme.

On the other hand, Karachi vegetable and fruit market wholesalers welfare association President Haji Shahjahan was of the opinion even though there was a late cultivation of onion in Sindh, the province harvested a bumper crop which has stabilised prices both locally and internationally and bring them down in the local market to around Rs15 to Rs20 per kg.

Shahjahan further said that currently exporters have orders for around 300,000 tons and orders exceeding 100,000 tons have been processed at an average rate of $600 per ton, however, onion prices internationally were expected to decline.

In India, onion prices soared to 80 Indian rupees a kg in December due to damage to crops after unseasonal rains, prompting the Indian government to scrap import duties and ban the export of the commodity. Encouraged by high prices, Pakistani traders started exporting onion to India through the Wagha land route and prices also rose in the domestic market.

According to reports, prices in India came down to 30-35 Indian rupees a kg last week but reports say they have started rising again, reaching Rs45-50 a kg.

Published in The Express Tribune, January 5th, 2011.

COMMENTS (5)

Yasar | 13 years ago | Reply It says someting negative about Indian agriculture, if they have to import from a nation hit by heavy rains and floods.
Haroon Rashid | 13 years ago | Reply Compliments to Mr. Aslam Pakhlai and Haji Shahjahan sahib for your outlook of the country. The situation in India is badly aggravated, as India has more poor than in Pakistan because of the size of population. The prices of Onions almost doubled in December 2010, than 2009. The Government in India expempted duty, and ordered large shipments to overcome this menace. The Government should put a strict embargo otherwise we will have to spend dollars for the onions, and it would be around $1.50 a kg. The buffer stock should essentially be kept. also about rice which is also getting scarce.
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