The government decision to allow those onion exports to India through Wagah whose Letters of Credit were opened before January 5 has not yet had a visible impact on the local market as the commodity is being sold at Rs 35 per kg in the wholesale market and Rs 45 in the retail market, traders told Business Recorder.
The government on January 4, 2011 banned onion exports to India via land route of Wagah Border due to soaring commodity prices in the domestic market, which hit Rs 80 per kg. Traders at Fruit and Vegetable Market Islamabad told BR that for last two days the commodity is being sold at Rs 160-190 per 5 kg and in retail at Rs 45 per kg. The impact of the government's January 12 decision to allow exports of onion of stalled L/Cs would be visible within a couple of days and according to traders rate may rise to Rs 250 per 5 kg.
Ali Akbar, an onion trader said that onions were not only exported to India but to Afghanistan through Torkham and Chaman border and through Quetta to Iran, as well as to Singapore and Malaysia. According to a Lahore-based onion trader Chaudhry Ijaz the January 12 decision would imply nearly 700 trucks of onions may be exported to India, out of which currently 300 trucks are already loaded and standing at Wagah Border while onions for the remaining 400 trucks are in godowns.
He added that the commodity was being sold at Rs 35-40 per kg in the local market and export of 700 trucks to India would not increase domestic onion price. When contacted, an official of the Ministry of Food and Agriculture on condition of anonymity said the government should not allow the export of the commodity to India as according to him Pakistan may face shortage of the commodity in the coming few weeks. However, the official said that the government allowed only those exports whose L/Cs were opened till January 5 ie before the imposition of ban.