AVN Report
ISLAMABAD: In an effort to curb the surging prices of onions in the domestic market, the federal government has recently fixed the minimum export price (MEP) of onions at $1,200 per metric tonne.
This decision comes as a revision from the previous MEP of $750 per metric tonne, which was initially set to support growers and regulate commodity prices locally.
Despite the initial MEP, the prices in the domestic market continued to rise due to heightened demand for onion exports. The increased demand followed India’s imposition of a ban on onion exports, providing an opportunity for Pakistani exporters to secure additional orders.
In response to this situation, the Ministry of Commerce opted to further elevate the MEP from $750 to $1,200 per metric tonne, aiming to exert greater control over commodity prices.
Waheed Ahmed, the former chairman of the Pakistan Fruit and Vegetables Exporters and Merchant Association, mentioned the substantial increase in export orders for Pakistani onions following India’s export ban.
He said to safeguard the interests of growers and manage local market prices, the export price was initially fixed at $750 per metric tonne, coupled with a requirement for 100 percent advance payment. This approach aimed to prevent losses for growers, ensuring the continued cultivation of onion crops in the upcoming year.
As prices continued to escalate, PFVA proposed a subsequent upward revision of the export price, ultimately settling on $1,200 per metric tonne to address the issue of soaring prices effectively, he added.
Ahmed urged market committees in different cities to play an active role in controlling onion prices. He also stressed the need for research and development to create improved onion varieties with a longer shelf life, given the limited storage capacity in Pakistan compared to India, which can store onions for 3-4 months. This, he believes, would contribute to more effective price control in the future.
