ISLAMABAD: An inter-ministerial meeting, called by the Ministry of Commerce on Monday to consider Indian request for resumption of onion export through Wagah border, remained inconclusive as majority of stakeholders expressed reservations of the impact of such a move on domestic prices in February.
The meeting was presided over by Additional Secretary Shahid Rahim Shaikh, in the absence of Commerce Secretary Zafar Mahmood, who supports the contention that allowing onion exports through Wagah would substantially increase local price of onions. "I have witnessed different viewpoints of different stakeholders present in the meeting, but majority of the stakeholders, including Ministry of Food and Agriculture (Minfa) and Ministry of Industries and Production (MoI&P), opposed resumption of exports through Wagah," said one of the participants of the meeting.
However, Commerce Ministry officials were not ready to say anything on record despite the fact that other participants were assured that media would be briefed by the hosting Ministry. As the Commerce Ministry imposed restriction on export of onion its prices came down from Rs 80-85 kg to Rs 40 kg.
Analyst are of the opinion that if the government resumes exports, onion prices would bounce back up. Commerce Ministry is expected to send a summary to the Prime Minister for final approval. "What I can say is that if the federal government resumes export of onion to India through Wagah border, Pakistani markets will face an acute supply shortage at the end of February," said one participant.
Commerce Ministry has received a formal request from India through Ministry of Foreign Affairs for resumption of onion trade through land route. According to Lahore Chamber of Commerce and Industry (LCCI), at least 400 trucks of onions are stuck as a result of sudden export ban by the government, but the LCCI supports this decision.
Indian government has urged the Pakistan government to at least allow export of onions already loaded on trucks. Commerce Ministry in its internal exercise examined the Indian proposal and pointed out that India had also not allowed trucks loaded with raw cotton to proceed to Pakistan after imposition of ban on export of cotton.
According to Indian media, Indian Commerce Ministry has conveyed to Islamabad through the External Affairs Ministry that it is ready to revisit the cotton export ban and ceiling issues if the gesture is reciprocated by Pakistan through the removal of the ban on the movement of onions.
This information, however, was not confirmed by officials in Commerce Ministry. Pakistan cotton importers told this scribe that they have urged Commerce Ministry officials to follow a tit for tat policy with India. According to sources, the meeting was apprised that about 40-50 trucks loaded with onion are stuck at Wagah border due to imposition of ban on export. Unconfirmed reports suggest that the Commerce Ministry will submit a summary to Prime Minister Gilani seeking permission to export onion to only those exporters who open Letters of Credit (LCs) by January 5, 2010.
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