Traders to resume the export of onions as prices drop 50%

They had earlier voluntarily halted exporting onions due to the rising demand in the domestic market and increasing prices.

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  • Onion sellers have decided to resume the export of onions.
  • The decision was taken after the cutback in prices of onions and market stability
  • The traders had earlier stopped exporting onions due to short supply and increasing prices.

(White Star / DAWN)

On Tuesday, the exporters decided to resume the export of onions, keeping in view the cutback in prices and market stability, after the arrival of a full crop of onions from Sindh.

The association has also written a formal letter to the Ministry of National Food Security and Research.

The Pakistan Fruit & Vegetable Exporters, Importers and Merchant Association (PFVA) had imposed a self-ban from the 3rd of November to curb the harvesting of premature onions for export.

They had earlier voluntarily halted exporting onions due to the rising demand in the domestic market and increasing prices.

On the 20th of November, the PFVA, after analyzing the supply and prices of onions in the market, had called a conference with exporters and decided to resume exports from the 27th of November.

In contrast, the decision was also intimated to the Department of Plant Protection.

Pakistan is the fifth largest producer of onion - E Agriculture Service for Farmers – Bakhabar Kissan

The price of onions, which was Rs. 2,800 per maund before the self-imposed ban, has now dropped to Rs. 1,200 to Rs. 1,300 per maund after the arrival of Sindh’s quality onion crops in the market.

According to PFVA Head Waheed Ahmed, matured crops would be available soon due to temporarily discontinuing onion exports.

Waheed assured that not only will the price of onion remain stable in the local market now, but hoarding would also be eliminated.

At the same time, farmers would be motivated to harvest again by getting reasonable prices for their produce.

Onion crops in Dera Allah Yar, Balochistan. (Zahid Mushtaq)

Traditionally, if the growers sustain financial losses in one crop during a year, they do not harvest the same crop next year.

According to the exporters, Pakistan has a window of opportunity to export onions in the global market for an additional month. They could generate foreign exchange for the state by taking advantage of the vegetable’s surplus volume.

Opportunities to export the Pakistani onion might be narrowed after one month as the Indian onions would be available in the global market by that time.

It is pertinent to mention that the PFVA has also pleaded to the Ministry of National Food Security and the Ministry of Commerce to ban the import of onion and potato from Iran in local growers’ interest.

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