ISLAMABAD: Traders on Thursday linked the surge in onion rates to a ban on exports from neighboring India as the commodity was being sold at 240 rupees per kilogram into the local markets, leaving consumers grappling with economic fallout.
Retailers are pointing fingers at the impact of massive exports on the escalating rates, with consumers already burdened by inflation now forced to pay hefty amounts for this necessary commodity compared to other vegetables.
Sheikh Muhammad Shah Jahan, President of the Wholesale Vegetable Association, has expressed concern for consumers impacted by the high rates, noting that many inflation-hit individuals are limiting their onion purchases to less than 1 kg to manage their daily expenses on other essential items.
Talking to a private news channel, he said following India’s export bans, Pakistani exporters capitalized on the situation, leading to a sudden local price hike from 160 to 180 rupees, up from 120-140, driven by intense buying. Subsequently, the rates have continued to rise due to thriving exports.
Abundant Onion Production
Contrary to claims of an onion shortage in Pakistan, Shah Jahan highlighted abundant onion production this year.
He emphasized the unfortunate situation where people are bearing the brunt of high rates while the country’s need for foreign exchange takes precedence.
Advocating for proactive steps, Shah Jahan reiterated his longstanding request to establish a board comprising government representatives, exporters, and importers.
He suggested the formulation of a policy during meetings held every fifteen days to address the current challenges in the onion market.
