Government Enforces Limits on Onion Exports Amidst Surge in Local Prices

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In an effort to address the escalating local prices, the Ministry of Commerce has promptly implemented measures by establishing a Minimum Export Price (MEP) for onions.

Effective immediately, the ministry has defined the MEP for both onions and shallots at $1200 per metric ton, based on freight on board (FOB) terms. Additionally, as outlined in the issued notification, onion exports will be permitted exclusively under Advance Payment terms.

It is noteworthy that local onion prices have surged to Rs. 240 per kg. This increase can be attributed to heightened purchasing by exporters, particularly following India’s restriction on onion exports until March 2024.

Retail sources highlight that exporters have been actively acquiring even the limited supply of Iranian and Kabul onions to fulfill the substantial demand for exports.

Onion Production Stats in Pakistan

Production:

  • Approximately 2.25 million metric tons in 2021 (6th largest producer globally).
  • Increased from 1.138 million tons in 1998-99.
  • Accounts for nearly 2% of world production.

Area:

  • Cultivated on around 315,000 acres (127,900 hectares).
  • Increased from 84,300 hectares in 1998-99.

Yield:

  • Average yield around 7.22 tons per hectare.
  • Lower than major producers like China and the Netherlands.

Regions:

  • Major production concentrated in Punjab and Sindh provinces.
  • Districts like Kasur, Vehari, Hyderabad, and Mirpurkhas contribute significantly.
  • Balochistan and Khyber Pakhtunkhwa also contribute notable amounts.

Consumption:

  • Estimated at almost 2 million metric tons in 2021.
  • Bangladesh is the leading consumer of Pakistani onions.

Trends:

  • Production and consumption have steadily increased over the years.
  • Government initiatives promoting onion cultivation and export.
  • Challenges include low yield, storage losses, and price fluctuations.

Additional points:

  • Pakistan exports onions to several countries, including Afghanistan, the United Arab Emirates, and Bangladesh.
  • The government has implemented measures to improve onion storage facilities and reduce post-harvest losses.
  • There are ongoing efforts to develop new, high-yielding onion varieties suitable for Pakistani conditions.

To obtain the most recent and accurate statistics on onion production in Pakistan, I recommend checking with authoritative sources such as:

  1. Pakistan Bureau of Statistics (PBS): The PBS regularly publishes agricultural statistics, and they might have updated information on onion production.
  2. Ministry of National Food Security and Research: This ministry often releases reports and statistics related to agricultural production in Pakistan.
  3. Food and Agriculture Organization (FAO): The FAO provides global and country-specific agricultural statistics. You can check their database or reports for the latest information on onion production in Pakistan.
  4. Local Agricultural Universities or Research Institutions: Universities and research institutions in Pakistan may also conduct studies and publish reports on agricultural production, including onions.

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