May 9, 2003	Friday	Rabi-ul-Awwal 6, 1424

ISLAMABAD, May 8: The Economic Coordination Committee (ECC) of the Federal Cabinet has directed the Trading Corporation of Pakistan (TCP) to purchase 5,000 tons of Balochistan onions for export, according to a reliable source.

The decision has puzzled farm sector observers here: If the objective was to benefit the farmers, surplus stock of onion is not only the problem of the farmers of Balochistan. It affects those of Punjab and NWFP as well, they point out.

Last year, the country produced 1.62 million tons of onions. Out of this, 1.4 million tons were consumed, leaving 0.22 million as surplus. In Baluchistan, the unsold stocks are estimated as 25,000 tons out of 350,000 tons total production.

The government simply ignored the pleas of the farmers to make arrangements to ensure that the farmers received reasonable price that would at least keep them above water in terms of their cost of production.

The only beneficiaries of this government policy are the middlemen who take undue advantage of the compulsion on farmers to get rid of their harvest in order to repay debt and pay to meet both ends, while seeing to it that the end-consumers are deprived of the benefits of bumper harvest.

In fact, it is further learnt, the Ministry of Food, Agriculture and Livestock (MINFAL), had informed the ECC that the prices of both onion and potato had plunged to rock bottom level that they did not cover even the farmer’s cost of production. This has ruined a large number of farmers resulted in huge loss to the farmers.

It had, therefore, suggested that measures be adopted on immediate basis for the export of maximum quantity of surplus stocks onion and potato and that the Ministry of Commerce be directed to convene a meeting of all the stakeholders to discuss the issue.

According to the latest available figures, the period of July- December 2002, saw a steep fall of export of potato to 12,800 tons. This is the lowest figure, as compared to preceding five years.

In 2001-02 57,000 tons potato were exported. The total output was 19,25,000 tons. After meeting the food and seed requirements (1.42m tons), 0.51m tons were surplus.