LAHORE – Onion prices decreased on Saturday owing to a ban on onion exports to India, the traders said. Citizens welcomed the decrease in price, while the exporters criticised it. Onion prices came down to Rs 30-35 per kg from Rs 40 per kg about one week ago. Federal Board of Revenue (FBR) imposed a ban on onion exports on January 4 owing to high prices in the local market. The market sources said the onion crop was good in the country but owing to heavy exports to India and other countries, there was a shortage in the local market and resultantly its prices had crossed Rs 80 per Kg in November and December. As soon as the ban was imposed, its prices came down.
The citizens have lauded the decision, saying it will stabilise the prices in the local market. They said export should not be allowed until the demand of local market is met.
“There is no point in exporting onion when its prices in local market are so high,” said a garment shop salesman, Tahir Hussain. He said the government should not allow export until the onion prices came down to Rs 20 per kg. “Last year the onion prices remained at Rs 20-25 per kg and now there is no reason that it should be sold at Rs 40 or 50 per kg,” a housewife, Asmara Khan said, adding onion was the basic for preparing meals. She said prices of garlic, tomatoes and ginger were already high and a decline in onion price will be a breath of fresh air for the poor.
The FBR sources said the onion exports will not be allowed in the near future. On Saturday, dozens of trucks were not allowed to cross Wagha Border, and the ban will continue until the local demand is met, said an FBR official. The exporters criticised the FBR’s decision and demanded the government to allow exports.
They said if the government wanted to impose a ban, it should have given time to the exporters to manage their dealings and complete their orders. “We would have to pay penalties if we do not meet the orders,” said an onion exporter, Nawaz Akhter. He said he got orders of around 1,000 tonnes and only transported 400 tonnes when export was banned. “I will not be paid for the 400 tonnes I exported due to the rapid steps of the government,” he lamented.
