Onion prices hike further in Pakistan

KARACHI: Amid the soaring in Pakistan, the prices of onion for the already burdened consumers hiked further in the country, ARY News reported on Monday.

As per details, the Ministry of Commerce has increased the export price of onion by Rs 40 instead of banning onion export, hiking the price in local market to Rs 240.

Onion prices swelled to Rs240 per kg on January 10, in the domestic markets as retailers blamed massive exports for the price spiral.

The already inflation-hit consumers are forced to pay heavy prices for the most sought-after commodity compared to other vegetables.

Speaking at ARY News programme ‘Ba Khabar Sawera’, Wholesale Vegetable Association President Sheikh Muhammad Shah Jahan linked the rise in onion prices to Indian ban on onion exports.

India – the world’s biggest exporter of onions – had banned shipments from Dec 8, 2023 till March 2024 after domestic prices more than doubled in three months following a drop in production.

Following India’s move, Pakistani exporters started cashing in on the situation with local rates suddenly crawling up to Rs160-180 from Rs120-140 on intense buying. Since then, the rates have continued to swell on thriving exports.

The association president, while talking to ARY News, said that many inflation-hit consumers were facing the brunt of the commodity’s high prices. “Consumers have restricted their purchases to less than one kg to manage their daily expenses of other items,” he added.

Shah Jahan also ruled out the shortage of onions in the country, noting that this year the country witnessed abundant production of the vegetable. “Our country is in dire need of foreign exchange but, unfortunately, the citizens were being sacrificed in this regard.”