Export of bananas and onions temporarily banned during Ramadan: Commerce Minister

ISLAMABAD: Federal Minister for Commerce, Jam Kamal Khan, addressed concerns regarding the temporary ban on banana and onion exports during Ramadan in the National Assembly on Friday. Khan clarified that the restriction is solely for the duration of Ramadan and is intended as a short-term measure.

The decision to impose the ban was made at the cabinet level after the Ministry of National Food Security submitted a summary, citing concerns over potential price escalations indicated by the sensitive price index and export association.

The move was prompted by a calling attention notice raised by Syed Naveed Qamar and other legislators regarding the impact of the ban on agricultural exports.

Minister Jam Kamal Khan assured the assembly that the ban would remain in effect until the 15th of the following month, emphasizing the government's responsiveness to the concerns raised by agriculturists.

The temporary ban aims to ensure a sufficient domestic supply of bananas and onions during the holy month of Ramadan, alleviating concerns among the general public and preventing any perception of artificial shortages.

This decision underscores the government's commitment to balancing the needs of local consumers with the interests of agricultural producers.

While acknowledging the short-term impact on export opportunities for farmers, Khan emphasized the government's proactive approach to managing food security during religious observances. He also indicated that the timeframe for the ban could be adjusted based on evolving circumstances.

The Ministry of Commerce instructed the Trade Development Authority to disseminate information about the decision to relevant stakeholders. Effective immediately and continuing until the conclusion of Ramadan, exports of bananas to Iran and Afghanistan will be suspended or restricted, while exports of onions to Middle Eastern and Gulf states will be halted. These directives were communicated in writing from the Ministry of Commerce to the TDAP.

 

Earlier this year, in January 2024, concerns regarding onion prices were raised, prompting the Ministry of Commerce to take action. With onions being a staple in South Asian cuisine, their importance cannot be overstated. However, the surge in prices, exceeding Rs 250/kg in many areas and breaching Rs 300/kg in some regions, posed a significant challenge, especially for economically disadvantaged families.

The crisis stemmed from a combination of factors, including disruptions in traditional supply chains from neighboring countries and export-driven demands fueled by temporary bans and pricing mechanisms.

And despite a hike in the Minimum Export Price (MEP) for onions to $1200 per tonne, aiming to curb outward flows and stabilize the domestic market, the prices of the largely used kitchen item remained skyrocketing. The exports of onions could not be controlled through the new initiative, ultimately causing a rise in prices of onions in the market to around Rs 300/kg.

A major reason for this over-export of onions is the ban that the Indian authorities placed on the export of onions in December 2023. This export opportunity led to a depletion of domestic onion stocks, resulting in a shortage and subsequent price hikes in the local market.

Earlier, the Ministry of Commerce, after the failure of various attempts to control prices of onions and bananas, had asked its department, the Trade Development Authority of Pakistan, to explore options for imposing restrictions on exports ahead of Ramadan.

The Ministry of Commerce has since directed the authority to consult the Sectoral Council for Agriculture and Food Processing regarding the imposition of emergency restrictions.

This proactive measure is aimed at ensuring an adequate supply of essential commodities such as onions and bananas within the country during Ramadan, assisting consumers and maintaining affordability.