In a surprising turn of events, Pakistan’s onion exports have soared to a staggering $210 million during the July-April period of the fiscal year 2023-24, setting a new record. However, this spike in exports has come at a cost for domestic consumers who have been grappling with record-high prices for the vegetable.
All Pakistan Fruit and Vegetable Exporters Association Patron-in-Chief, Waheed Ahmed, anticipates that the onion export earnings may reach $250 million by the end of the fiscal year. He refuted claims that the surge in exports has directly contributed to the inflationary pressures on onion prices domestically. According to Ahmed, market forces and the failure of price regulators to curb profiteering are to blame for the surge in local onion prices.
Following India’s export ban on onions from December 2023 to April 2024, Pakistani consumers witnessed a drastic increase in onion prices, reaching Rs300-350 per kg. Although New Delhi lifted the ban in early May, prices only slightly eased to Rs70-150 per kg on average.
Despite efforts to import onions from Iran and Afghanistan, local prices remained stubbornly high. Meanwhile, Pakistani exporters capitalized on the situation created by India’s export ban to meet global demand effectively.
The caretaker government attempted to mitigate the price surge by raising the minimum export price of onions. However, this decision backfired, leading to further hardships for consumers.
Waheed Ahmed emphasized the need for research and development to enhance the quality and shelf life of Pakistani onions, enabling them to compete better in the international market. He also highlighted the potential for further growth in onion exports if quarantine issues with key markets like Indonesia, the Philippines, and Thailand are addressed.
With Pakistani onions now making inroads into various countries for the first time, there is optimism about the prospects for expanding the country’s onion export market, albeit with challenges that need to be addressed domestically and internationally.
