Onion crisis: tearful, indeed

Pakistan and India are normally at each others throats; but there is something that brings the two countries together: onions.
The Great Onion Crisis of 2010, as it is being termed across the media, is a reminder of the need-based affability between the two neighbours.
In May this year, India envisioned an improved onion production of 9.5 million tons, a million tons over the previous year, thanks to improved crop technology and irrigation. However, it seems like the Indians thought too soon.
Rains in some parts of the country destroyed the standing crop in its onion-growing areas, considerably plummeting domestic supplies.
Consequently, the pressure on onion prices in India became quite colossal, resulting in mounting inflation. In the week ending December 11, year-on-year inflation in India stood at around 12 percent compared to around 9.5 percent versus the week before, while vegetable prices alone jumped 11 percent in the same period over the previous week.
The tear-inducing vegetable has not spared the Congress-led government either, since onions are a politically-sensitive issue because of its impact on Indias poor people. The prices have surged from Indian Rs 25-30/kg (PKR 47-57) in October to Indian Rs 60-70/kg (PKR 114-133) in December.
The importance of the root plant can be gauged by the fact that the onion factor helped overthrow the central government in 1980, and that state governments in Delhi and Rajasthan fell in 1998 over rising onion prices.
No wonder the import duty was slashed to zero and export of onions from India was banned last week.
And the countrys close neighbour came to its help, literally ignoring its own set of onion problems. For most of the last week, Pakistan delivered on average about 50 trucks daily, each carrying 10 tons of onions to India, according to the LA Times.
But the situation at home is far from satisfactory. According to Shahjahan, President, Sabzi Mandi Wholesale Market, floods had destroyed up to 40 percent of the onion crop. As a result, domestic prices of onions rose considerably in October.
The situation improved after the onion harvest began in Sindh, perching up production slightly, and this is what encouraged some export to India last week. The contagion, however, influenced domestic prices, with onion prices in Pakistan rising to Rs60/kg from around Rs30/kg at the beginning of October.
"Several thousand tons have been sent to India already, despite the destruction after the floods. This can lead to a shortfall locally, and we might need to import onions from India again at a very high price when the crop is harvested from some of their districts after a few weeks. Weve imported from them consistently over the past three years," lamented Shahjahan.
The baffling quandary can be explained by the fact that onion harvest takes place in different times in different regions; Sindhs in October, Balochistans in March, and Khyber Pukhtunkhawas. in May.
And with a shelf life of less than 2 weeks, and inadequate storage facilities at home, not much can be done if theres an excess in one season and a shortage in another.
"One way this can be resolved is by educating farmers about off-season growth of onions," said Suleman Khwaja, General Secretary, Sabzi Mandi Karachi, who added that enhanced storage facilities for the commodity would also help.
Until these steps are taken, one hopes the onion export dilemma doesn make dinners as expensive as the sugary desserts.