Iranian onion brings no price relief

Published February 7, 2024
Market players have urged the caretaker government to ban onion exports to check its rising prices.—AFP/file
Market players have urged the caretaker government to ban onion exports to check its rising prices.—AFP/file

KARACHI: The arrival of the Iranian onion has brought no relief rather it adds salt to the wounds of consumers as it is selling in the range of Rs200-240 per kg despite its poor taste and quality.

Dealers said consumers usually avoid Iranian onion as it cannot compete with the quality of locally produced onion in making various dishes.

Surprisingly, onion exporters are fetching foreign exchange through massive exports to the Far East, the United Arab Emirates (UAE) and Sri Lanka while the foreign exchange is being spent to import costly Iranian onion to bridge the demand and supply gap.

Pakistani exporters have been fully cashing in on huge onion demand in the world market after a Dec 8, 2023 ban imposed by India on its exports aimed at stabilising prices. The ban would remain effective till March 2024.

The caretaker government in the second week of January raised the minimum export price (MEP) on onion exports to $1,200 per tonne from $750 to bring down prices in the local market but the decision had proved counterproductive for the end users.

Some retailers in the market were seen selling high quality and dry locally produced onion at Rs300 per kg claiming it as export quality. Most of the retailers are selling wet onions arriving from Sindh.

Falahi Anjuman Wholesale Vegetable Market Super Highway President Haji Shahjehan said only four to five trucks carrying Iranian onions have been arriving daily in the wholesale mandi.

There are reports, he added, that the Iranian government had lowered the duty for the export of onion and tomatoes.

He urged the government to impose a ban on onion export for at least 15 days to control the rates.

Published in Dawn, February 7th, 2024

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Court business
Updated 30 Oct, 2024

Court business

The unity and commonality of purpose on display in the full court meeting are what will help the SC endure.
UNRWA ban
30 Oct, 2024

UNRWA ban

NOT content with the war of extermination it is executing against the Palestinian people, Israel now wants to ensure...
Cricket changes
30 Oct, 2024

Cricket changes

WIN or lose, Pakistan cricket seems to be embroiled in a constant state of flux. Just when things seemed to be...
Regional trade
Updated 29 Oct, 2024

Regional trade

If done right, restored trade relations with India can also open the door to better bilateral ties.
Speaker’s remarks
29 Oct, 2024

Speaker’s remarks

THOUGH the ECP has been formally admonished not once but twice for its continuing failure to obey the Supreme...
On the edge
29 Oct, 2024

On the edge

PAKISTAN is on the verge of hitting 50 polio cases this year. A look at the trends leaves one bewildered. We were...