ISLAMABAD: The Commerce Ministry is unlikely to lift ban on onions export to India through Wagah border as reciprocation of Indian treat to Pakistan raw cotton businessmen, well informed sources told Business Recorder. A couple of days ago, Pakistan had imposed restrictions on export of onions to India through land route after its prices in the local market touched Rs 80 per kg.
"We have received a formal request from the Indian government through Ministry of Foreign Affairs, but any final decision will be taken after consultation with other stakeholders," sources added. India is of the view that Pakistan should allow at least export of onion already loaded on trucks. According to sources, the Commerce Ministry will examine, if India had allowed trucks loaded with cotton to proceed to Pakistan after imposition of ban on export of raw cotton.
When contacted, raw cotton exporters told this scribe that India did not allow the export of raw cotton contracted in July 2010 and were due to reach Pakistan in October. "I think Pakistan will reciprocate India's action with regard to onion request," commented an insider who is well aware with this development. However, Pakistan's onion consumption is about 1.3 million tons annually whereas the estimated production of onion is 1.8 million tons which implies that 0.5 million tons is surplus. These production figures are over and above the crops in Kacha and some other far-flung areas.
The government imposed restriction on export after onion prices shot up to Rs 80 per kg in domestic market and the ban on onion exports to India has positively impacted on the domestic market as within 24 hours onion price came down from Rs 80 per kg to Rs 40 per kg. India is facing acute onion shortage due to poor onion crop and Pakistani exporters began exporting onions to India, however, exports to high-value markets would continue via sea route.
The government last year fixed onion production target at 1.902,000 tons cultivated on 141,890 hectares of land, but last year the area under onion cultivation remained below target. According to official documents made available to this scribe last year onion was cultivated on 118,200 hectares and total production stood at 1,534,350 tons.