PTI govt allows export of onions stuck at port

Consignments had reached port prior to govt’s notification banning commodity’s export

KARACHI: The government has allowed export of 170 containers of onion that were stuck at port following issuance of a notification imposing ban on export of the commodity.

The Economic Coordination Committee (ECC) of the cabinet had banned the export of onion, fearing it would create shortage of the commodity in the domestic market and further inflate the inflation reading.

The Ministry for National Food Security and Research also released a notification, restricting the export of onion till May 31, 2020.

“In compliance with the directive received from the collector, the loading of all consignments declared to contain ‘fresh onion’ falling under PCT 0703.1000 filed in the Web Based One Customs (WeBOC) on or before February 28, 2020 is allowed,” read a notice issued by the office of assistant collector export examination.

“The loading of all consignments or containers declared to contain ‘fresh onion’ falling under PCT 0703.1000 filed in WeBOC on or after February 28, 2020 is not allowed.”

An earlier notification had halted the export of even those containers that had reached the port before the government’s decision on banning exports. “These consignments could have caused a loss of $1.5 million had the government not allowed their export,” said All Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association (PFVA) Patron-in-Chief Waheed Ahmed.

He stressed that export permission for these containers was necessary because failure to do so would have tarnished the image of Pakistan’s exporters besides inflicting a hefty monetary loss.

“Had the containers not been allowed to reach their destinations on time, buyers would have avoided placing orders with Pakistani exporters next time on doubts they may not meet their commitment,” he said.

Ahmed appreciated the timely action by the Ministry of Commerce, saying it would save onion exporters from loss of millions of dollars.

He was thankful to the commerce secretary who issued directives to the Federal Board of Revenue (FBR) and Customs authorities to save the exporters from losses as well as their image abroad.

He added that the country needed a robust agricultural policy, which should promote innovation and modern technology in farm practices.

He emphasised that banning the export of a commodity out of food security fears was not a long-term solution. He was of the view that the country needed to increase exports, however, agricultural yields were not keeping pace with the requirement.

“Seeds are getting older and hence we are not able to harvest the crop according to our needs,” he said. “On the other hand, the change in weather patterns due to global warming is also damaging our crops.” 

Published in The Express Tribune, March 3^rd, 2020.

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