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Reading: Pakistani Onion Exports Surge to $210 Million Despite Local Price Hikes
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Pakistani onion exports
PhotoNews Pakistan > Business > Pakistani Onion Exports Surge to $210 Million Despite Local Price Hikes
Business

Pakistani Onion Exports Surge to $210 Million Despite Local Price Hikes

Web Desk
By Web Desk Published May 23, 2024 3 Min Read
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Pakistani onions. Photo: Tridge
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Unprecedented onion exports fetched $210 million during July-April FY24, despite consumers facing record prices for the vegetable due to inflation.

“Onion exports may soar to $250m by the end of the current fiscal year,” stated Waheed Ahmed, Patron-in-Chief of the All Pakistan Fruit and Vegetable Exporters Association. He dismissed claims that higher exports caused the price surge in the country’s staple food.

Pakistani consumers paid Rs300-350 per kg for onions after India banned exports from Dec 8, 2023, to April this year. The ban’s lift in early May brought the national average price down to Rs70-150 per kg.

“The price increase has nothing to do with export shipments. It is the job of price regulators to prevent consumer exploitation by market forces,” said Mr. Waheed. He explained that if the wholesale price is Rs150 and retailers charge Rs300, exports cannot be blamed for the local price hike.

Overall, vegetable exports reached 1.044 million tonnes, fetching $371m in 10MFY24 compared to 1.171m tonnes ($262m) in the same period last year. This indicates an average per-tonne price of $354 vs. $233, aided by stable rupee-dollar parity from September 2023 onward.

Onion Exports

“The share of onion in overall exports is 200,000-225,000 tonnes, while potatoes and other vegetables make up the rest,” claimed Mr. Waheed.

Local traders imported Iranian and Afghani onions to meet demand, but prices remained high. Exporters capitalized on the situation created by the Indian ban to meet global demand.

The caretaker government raised the minimum export price (MEP) of onions to $1,200 per tonne from $750 in January. This decision aimed to protect growers and lower local prices, but it backfired for end users.

“We need research to develop better onion varieties with a longer shelf life to control prices and compete with Indian onions, which have a three to four-month shelf life compared to one month for local onions,” said Mr. Waheed.

He noted that Pakistani onions are now available in many countries for the first time, with large shipments sent to regular Far Eastern markets.

“Our onion exports can grow further if quarantine issues with Indonesia, the Philippines, Thailand, etc., are resolved,” he added.

TAGGED:FeaturedPak­istan
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