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April 04, 2007
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Wednesday
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Rabi-ul-Awwal 15, 1428
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Low prices causing loss to onion growers
By Aamir Shafaat Khan
KARACHI, April 3: Onion growers have been suffering huge losses these days as they are fetching just Rs160-170 per 40 kg for their produce as compared to Rs600-700 two months back.
In the wholesale market New Subzi Mandi, onion is selling between Rs4-5 per kg while retailers are charging Rs10-12 per kg. On January 1, 2007 onion was selling at Rs28 per kg at retail, falling to Rs20 on March 1 and Rs10-12 per kg on April 1.
Onion production from the Sindh crop - which usually arrives in the market from September-October - had been devastated due to huge rains in July-August 2006. The country had to open its borders for onion imports to meet the shortfall and to stabilise domestic prices.
From September 15, 2006 to January 2007, dealers had brought in 250,000-300,000 tons of Indian onions which however could not match the daily consumption but somewhat had resulted in containing rise in local prices. Pakistan’s annual onion consumption is estimated at 2.2-2.3 million tons.
“Growers feel satisfied when they get at least Rs400-500 per 40-kg but getting Rs160-170 per 40-kg is even below their production cost,” Jehangir Palari, an onion grower from Jhampir District Thatta, told Dawn on Tuesday.
He said that growers had been fetching Rs600-700 per 40 kg early this year but it was unfortunate that rates had tumbled down. Currently, onion from Jhampir, Thana Boola Khan, Sari etc., is arriving in Karachi.
Onion crop had destroyed over 50 per cent in interior Sindh areas like Badin, Tandoallahyar, Jacobabad etc., due to rains last year, he added.
He added that initial crop from other parts of Sindh had damaged due to heavy rains but the arrival from late producing areas had suffered set back owing to huge arrival of Indian onion. Jehangir said that 130 bags of 90 kg each costs Rs5,000 in terms of transportation to Karachi from Jahmpir area.
Growers pay around Rs100 (Rs40 as transportation charges, Rs25 for bag (Bardana) and Rs25 labour charges for bag filling) for shipment of 80 kg bag from production area to Karachi Subzi Mandi. On the contrary they were now releasing the 80 kg bag of onion in just Rs300.
Pir Bux Baloch of Jhampir Area said that satisfactory rate for growers was Rs600 per 40 kg bag in which the growers can expect saving of Rs2-4 per kg, while Rs400-500 can also be termed as average earning but Rs160 per 40 kg was a sheer loss to the growers.
He said that growers had to pay huge electricity bills for running machines in order to get boring water besides other charges.
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