In light of flourishing onion exports and rising domestic prices, the Ministry of Commerce in Pakistan has established a minimum export price (MEP) for onions at $1,200 per ton (FOB), according to a trustworthy source from the All Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association (PFVA).
The Trade Development Authority of Pakistan issued a notice on January 12, reflecting this decision and further stating that onion exports would only be allowed under advance payment terms.
Following India's onion export ban on December 8, 2023, there was a significant increase in local onion prices in Pakistan. Exporters have since suggested a revision of the MEP from the current $750 per ton (FOB) and asked for 100% advance payments to protect growers from potential losses.
The PFVA expressed surprise at the absence of effective control over market prices and the difficulties faced by government departments in maintaining price stability. The Association pointed out that unlike Pakistan's one-month storage capacity, India can store its onions for three to four months.
Source: profit.pakistantoday.com.pk