The Commerce Ministry has called an inter-ministerial meeting on Monday to deliberate whether Pakistan should resume export of onion to India through Wahgah border, as the Lahore-based business community and Sindh government are pressing for resumption of export, sources told Business Recorder here on Saturday.
Pakistan stopped onion exports via Wahgah on January 5, 2011, ostensibly to control surging prices in domestic markets across the country after prices skyrocketed to Rs 80-85 per kg in retail. A delegation of exporters also met Commerce Secretary Zafar Mahmood on Saturday to convince him that the government should allow export of contracted onions, or at least let those trucks offload which are standing at the entry point of Wagha border.
According to sources, the Commerce Secretary explained to the delegation that the decision was taken after detailed deliberations with the stakeholders, including the provincial governments. Some policymakers fear that with resumption of export to India through Wagha border, the prices of onions may cross Rs 100 per kg in Pakistan as the price of onions in India is about Rs 90 (Indian rupees) per kg. In that situation, people who are already facing high inflation would come out onto the streets and Commerce Ministry would be the target, said an official.
Commerce Ministry has invited Ministry of Foreign Affairs, Ministry of Industries and Production, Ministry of Food and Agriculture, besides other attached organisations to deliberate on the pros and cons of Indian request as well as demand of LCCI and Sindh government.
Minfa has been advised to get comments of provincial governments to the inter-ministerial meeting to avoid any controversy, fearing that provinces may make hue and cry if prices surged again in case federal government lifted ban on export of onions through Wagha border. The Ministry of Foreign Affairs has forwarded the letter of Indian government to Commerce Ministry, whereas Lahore Chamber of Commerce and Industry (LCCI) and Sindh government have formally requested lifting of ban on export of onion to India.
Sindh government, sources said, is of the view that the price of onion has reached Rs 25,000 per ton in the local wholesale market and it is high time that federal government should lift ban on its export through Wagha border so that farmers may get reasonable price of their produce.
"We had enough consultations with all the stakeholders before imposition of ban on export of onions through Wagha," said, Secretary Commerce, Zafar Mahmood while talking to Business Recorder. He said that the decision was taken in the best national interest and it was not in reciprocation of Indian treatment in respect of Pakistani raw cotton importers.
Pakistani importers who finalised contracts of raw cotton in July last year for October have not received delivery of cotton because of a ban by the Indian government. An official told this scribe that Commerce Ministry would send a summary to Prime Minister Yousaf Raza Gilani in the light of decisions to be taken at the inter-ministerial meeting on Monday, after which India would get its answer: yes or no, on release of struck consignments.
India, sources said, has asked Pakistani authorities for resumption of onion import, for two weeks, after which Sri Lankan onion would be available in Indian market. Prices of onion have dropped to Rs 40 per kg in retail from Rs 80 per kg before imposition of ban on export through Wagha border.