Govt fixes minimum export price for onions to $1,200 per tonne

In response to thriving onion exports and escalating domestic prices, Pakistan's Ministry of Commerce has set the minimum export price (MEP) for onions at $1,200 per tonne (FOB).

A reliable source of the All Pakistan Fruit and Vegetable Exporters, Importers, and Merchants Association (PFVA), disclosed that the Trade Development Authority of Pakistan issued a notification on January 12, citing the commerce ministry's decision.

The notification also stipulated that onion exports would only be permitted under advance payment terms.

According to data from the Pakistan Bureau of Statistics (PBS), the national average price of onions increased from Rs160-250 per kg to Rs180-260 per kg during the week ending on January 11, compared to the preceding week.

This surge in prices followed India's ban on onion exports on December 8, 2023, when the national average price of onions in Pakistan stood at Rs130-220 per kg for the week ending December 7, 2023.

It was noted that exporters received substantial orders after the Indian ban, which significantly drove up local onion prices.

In a meeting with the commerce ministry on Friday, exporters proposed an upward revision of the MEP from the existing $750 per tonne (FOB) and requested 100% advance payments to safeguard growers from potential losses.

They expressed concerns that without such measures, onion cultivation might decline next year, leading to a further reduction in local prices.

The PFVA expressed astonishment at the lack of effective control over market prices by market committees and the apparent challenges faced by government departments in stabilizing prices.

The Association highlighted that India can store its onions for three to four months, compared to the one-month storage capacity for Pakistani onions.