The federal government has banned the export of onions via land route in an attempt to stabilise prices in the domestic market, while exports of onions to India will continue through sea route. Sources in the Ministry of Food and Agriculture (MinFA) told Business Recorder that the government has directed all the concerned departments not to allow the export of the commodity through land route.
Sources also said that the government would ban onion exports through sea route, if considered necessary.
The government has taken this decision after onion prices shot up to Rs 80 per kg in domestic market and the ban on onion exports to India has positively impacted on the domestic market as within 24 hours onion price came down from Rs 80 per kg to Rs 40 per kg.
India is facing acute onion shortage due to poor onion crop and Pakistani exporters began exporting onions to India, however, exports to high-value markets would continue via sea route.
The government last year fixed onion production target at 1.902,000 tons cultivated on 141,890 hectares of land, but last year the area under onion cultivation remained below target. According to official documents made available to this scribe last year onion was cultivated on 118,200 hectares and total production was 1,534,350 tons.
Traders at fruit and vegetable market, talking to this correspondent said that in India onion prices had increased to 80 Indian rupees per kg in December due to damage to crops after un-seasonal rains. They said that unusual increase in the onion prices compelled the Indian government to scrap import duties and ban the export of the commodity.
Traders maintained that they were encouraged by high prices of onions in India and started exporting onions to India through the Wahgah border. However, this had negative impact on domestic prices.
Umar Awan, a trader at fruit and vegetable market said that even though the decision has been taken, around 250 trucks of onions were reaching India everyday through Wahgah border, while around 60 to 85 trucks of onions were being exported through the sea route. However, it has been reported that Pakistani authorities stopped over 300 trucks loaded with onions bound for India at the Wahgah border.
Currently, the price of onions is Rs 1,000 to Rs 1,200 per 40 kg compared to Rs 600 per 40 kg last year and with a ban on export via land route onion prices in the local market declined to Rs 40 per kg, he added.
Sindh harvested a bumper crop, which has stabilised prices locally and brought them down to around Rs 15 to Rs 20 per kg in December.
He further said that currently exporters have orders of 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 within the next few weeks. SAARC Chamber of Commerce and Industry has rejected the government''s ban on exports of onions through Wahgah border saying that this would compromise the deals that have already been struck between Indian buyers and Pakistani exporters which would be a violation of international law.