Adjustment to Onion Export Price Aims to Curb Soaring Domestic Costs

KARACHI: In an effort to stabilize domestic prices amidst increasing demand, the federal government declared a revision in the minimum export price (MEP) for onions, setting it at $1,200 per metric tonne on Friday.

Previously established at $750 per metric tonne to support local growers and regulate commodity prices, the initial pricing failed to contain the surge in the domestic market. This uptick was driven by heightened demand for onions due to India's export ban on the commodity, creating favorable conditions for Pakistani exporters to secure lucrative export orders.

Waheed Ahmed, former Chairman of the Pakistan Fruit and Vegetables Exporters and Merchant Association, emphasized that the surge in onion prices locally was a direct result of the significant export orders gained after India's export ban. The initial MEP of $750 per metric tonne, requiring a 100 percent advance payment, aimed to protect local growers from losses and secure the future cultivation of onion crops.

"We must consider the interests of our growers, exporters, and the local market, closely monitoring onion prices," Ahmed stated.

As prices continued to rise sharply, the PFVA proposed a subsequent upward revision of the export price, leading to the current fixation at $1,200 per metric tonne as a measure to curb excessive prices.

Ahmed urged market committees in various cities to actively intervene in controlling onion prices. He also highlighted the need for research and development to produce onion varieties with extended shelf life, citing the difference in storage capabilities between India and Pakistan.

He noted that while India can store onions for 3-4 months, Pakistan faces limitations of around one month. Developing varieties with longer shelf life would contribute to effective price control in the onion market, he added.