In South Asia, onions are a staple in every cuisine and an essential part of the Pakistani diet. Cultivated across approximately 136,000 hectares, the country's 2020 onion yield was an impressive 1.74 million tons. However, recent weeks have seen onion prices skyrocket to over Rs 250/kg, with prices in some areas exceeding Rs 300/kg. This sharp increase poses a significant burden on the economically disadvantaged, struggling to afford this critical food item.
Despite importing additional onions from Afghanistan and other countries earlier this year, Pakistan is grappling with this price surge. A key contributor to the crisis is neighbouring India, with the underlying issue being supply and demand. The Pakistani authorities are largely to blame for this lack of foresight and planning.
The Pakistan Fruit and Vegetable Exporters, Importers, and Merchants Association (PFVA) attributes the local price spike to a surge in export orders following India's onion export ban. On December 8, 2023, India banned onion exports to protect its domestic food security, after previously setting a minimum export price of $800 per ton for onions.
[ Rs 100 = €0.33 ]
Source: profit.pakistantoday.com.pk