KARACHI: The federal government on Friday announced fixation of the minimum export price of onion at $1,200 per metric tonne to control the soaring prices in the domestic market.

Previously, the price was fixed at $750 per metric tonne to support growers and control the commodity prices in local market.

However, the prices in the domestic market remained increasing because of rising demand of onion for export purposes after India imposed ban on export of onion and Pakistani exporters taking full advantage of this situation fetching export orders.

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Accordingly, in order to further control the commodity prices, the Ministry of Commerce on Friday enhanced the MEP from $750 per metric tonne to $1200 per metric tonne.

Waheed Ahmed, former Chairman Pakistan Fruit and Vegetables Exporters and Merchant Association said that Pakistan started getting huge orders for export of its onion when India imposed ban on export of onion and thus the price of onion in local market stated escalating.

To control the price, initially export price fixed at 750 per metric tonne with 100 percent advance payment so that our growers don’t sustain losses otherwise they would not grow onion crops next year.

“We have to see interest of our growers, exporters and local market and thus kept a close eye on the price of onion,” he added.

However, when price sharply increased, PFVA again proposed export price revision upwards and now it has fixed at $1,200 per matric tonne so as to control high prices.

He urged the market committees of different cities to come forward and control the price of onion.

He said India can store its onion for a longer period of 3-4 months while we can hardly do so for a month. Therefore, we need to carry out R&D to develop better varieties of onion with longer shelf life so that price of onion can be effectively controlled, he added.

Copyright Business Recorder, 2024