Editorial

Trading vegetables

The recent decision by government to ban onion exports to India is unwise, may have already provoked retaliation.

Editorial January 10, 2011

Trading vegetables

The recent decision by the government to ban onion exports to India is unwise and may have already provoked Indian retaliation. In trying to prevent the rise in prices of one agricultural commodity, the government may end up causing an increase in the prices of a far greater number of foods items. Free trade is based upon a simple principle of reciprocity. No country can expect the rest of the world to allow access to its markets and goods if it closes off its own. The government must realise that Pakistan imports a far wider range of food items from India than it exports. If it tries to close off the export of a commodity that India needs in order to keep domestic prices low, India is likely to stop the export of a range of products that Pakistan needs, such as lentils, chickpeas and spices. Imports from India keep prices of these commodities low in Pakistan and many of them form a staple part of the nation’s diet. If imports from India stop, food price inflation — already skyrocketing — will shoot up even further.

This is one of those rare instances where allowing for free trade benefits both producers and consumers in Pakistan. Onion farmers benefit from the higher prices they are likely to command on both the domestic and Indian market, while Pakistani consumers benefit from continued access to cheaper Indian food items. There is no justification for the government to take this step. It is short-sighted policy-making at best and outright incompetence at worse.

The Indian government has not taken any retaliatory steps yet, though a group of Indian exporters have halted shipments to Pakistan. There is still time for the government to reverse the decision. The last thing the country needs right now, as it battles economic and political uncertainty, is to spark a trade war with India. We could not afford it in the best of times. We certainly cannot afford it now.

Published in The Express Tribune, January 11^th, 2011.

COMMENTS (9)

ashok sai | 13 years ago | Reply @ Sara Read this, http://www.indianexpress.com/news/Pak-suffers-price-crash-but-won-t-supply-onions-to-India/736672/ So, dont make fool of yourself. This is the dipical attitude of Pakistanis, 'denial'. You will reach nowhere even if i dont wish.

Sara | 13 years ago | Reply @ Ashok sai Govt banned onion due to public pressure. bcz onion was already on very high price, mean while govt traded with india but onion was not so cheap even then, may b flood in pakistan a factor of high price of onion. When new onion came in mkt, traders start exporting to india. Onion reached at price of Rs: 80 in Pakistan, so what u expect from a common man? even having onion in mkt he is buying it at Rs:80 and neighbouring country whom u r exporting, they are getting on cheaper rate. India exported onion when it was cheap and much in quantity. India also have price of Rs:80 of onion. Will India export it? No. Ur govt immediately banned export of onion bcz of high price in local mkt. Same the case in Pakistan. It was Rs:35-40 per Kg. As it started export to India its price jumped to Rs:80. Now tell, what govt should do?

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SKChadha | 13 years ago | Reply It is another bad idea to stop exports of perishable goods to Pakistan. Foolishness should not be reciprocated by foolishness. When we do business both parties gain, if Pakistan stops export it is better for India to find next better source and forget the deal. India should go on exporting fruits and vegetables as long as such exports are remunerative to India. After all it is better than throwing them for animal feed.

ashok sai | 13 years ago | Reply @ Sara Dear friend, all I have said, what was told in Pakistani newspaper ET - Editorial. Again I am repeating, ordinary Pakistani civilians deserve better in life but because of the few thugs and idiots your country pulled back to 19th century. So, dont be under the impression that we always after to degrade you. Read the article again and tell me why did your Govt. banned the export of onions ? This kind of attitude brings us here with the hope of some sane people still left in Pakistan. Best Regards

Sara | 13 years ago | Reply @ Ashok sai Yes, u dont fight with others. The others are mad, who want to fight with GREATER INDIA.

Sanjay, Mumbai | 13 years ago | Reply Both India and Pakistan benefits by having simpler trader regime between themselves. Due to proximity of Pakistan to northern part of India, Northern India can find many goods / services ( like cement, onions etc) at compettive prices from Pakistan as compared to goods/ services brought from Southern India. Same way Pakistan can benefit a lot from items manufactured in India, rather than importing from Middle east, Europe, Far east , China etc. Trade will bring greater prosperity to our people , which in turn will reduce tension, venom, hatred which is spreading currently in many parts of Pakistan agaisnt India and vice versa.Maturity on part of political leaders, media, public figures is required to convince their aam janta about this simple theory..Time is surely running out..if we cannot move ahead and leave old baggages behind....we are destined for avoidable troubles for masses. Lets onion trade be starting point...Let Pakistan flood Indian markets with its onions to start with...!

G.Din | 13 years ago | Reply If we cannot have trade between India and Pakistan as normal civilized, rational people do, here is another way to respond to each others needs. Take the current onion-tomato controversy. India is short of onions and Pakistan of tomatoes, right? Let us establish a day of the week when Pakistanis come to the Wagah check point with their onions and Indians come with their tomatoes. At a previously established signal, we start throwing onions and tomatoes at each other across the border. When the need for onions or tomatoes is met, the respective party will stop throwing what they brought. That would be the signal for the other party to cease, too. After all, in continuing the onion-tomato war, it would not be sensible to waste next day's ammunition. When the need for onions/tomatoes has been met, the concerned party will not come to our meeting point. It will be a sad day for the other party but such is Life. Good times don't last for ever! Since we are not going to light any candles, there is no need for Kuldip Nayyar's presence, besides he will only be miserable and destroy the understanding underlying this exchange. At the end of day, Pakistanis will have their tomatoes and Indians their onions. And, we would have bypassed government-to-government processes. Another serious advantage: we will not have disturbed the state of war between us although it would upset the forces on both sides manning the check point.. We could time this quite harmless exchange (except for a few bruised egos) so that we end it by the time border security hold their flag-lowering ceremonies, so that we could observe that uplifting ceremony and bet on who glowered down with more contempt ("I think you are only a little, measly worm") on his adversary, Indians or Pakistanis, and who strutted with greater "look-I-can raise-my-leg-higher-than-you-heh-heh-heh" mock aggression.

ashok sai | 13 years ago | Reply @ Chandrakant Did you read the article, we Indians never start a dispute with any country but if they behave like this what should we do ?

Chandrakant | 13 years ago | Reply Let us forget all our dispute and engage ourselves in trading/commercial activities. If economies develop all the other things will fall in place.

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