KARACHI: Import of onion is the only way to control any further jump in prices as Balochistan’s stock of the commodity has almost exhausted and the Sindh’s crop will hit the market by mid-October, sources said on Tuesday.

In the past two weeks, onion prices have more than doubled — from Rs30 per kg to Rs80 per kg — due to an increase in demand as Eidul Azha neared and heavy rains hampered supplies from Balochistan to Karachi market.

Vegetable dealers in the wholesale market were divided over the peak price of onion on Tuesday.

Falahi Anjuman Wholesale Vegetable Market Super Highway President Haji Shahjehan said oninon price now being quoted at Rs2,000 per 40kg . It was Rs300-400 per 40kg last year.

“I think we need to import onion from India given its close proximity, at least for the current month, to meet bridge the demand gap,” he said.

The market is also abuzz with reports that Pakistani onion had been smuggled out to Iran and Afghanistan prior to Eid which caused shortage and eventually resulted in a price hike.

Disagreeing about this notion, Mr Shahjehan said, “Only Balochistan crop has been feeding the entire country. Local onion had not found way into our neighbouring countries via illegal channels as there were not enough surplus stocks.”

Due to low prices last year majority of the growers in Balochistan had refrained from cultivating onion this year, he added.

Onion shortage had already hit Karachi and parts of the country prior to Eidul Azha so there is no question of smuggling of this main staple to neighbouring countries.

Patron-in-Chief All Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association, Waheed Ahmed said onion price in Karachi Mandi had hit Rs4,000 per 40kg on Tuesday due to arrival of only two to three trucks from Balochistan.

He said he had spoken with Director General Plant Protection Department Dr Syed Waseem ul Hassan on Tuesday, seeking issuance of import permit.

“We need to import at least 50,000 tonnes of onion from India, China, Egypt and Iran to prevent any crisis like situation in the current month as Sindh crop is still one and a half month away,” he said.

He said he would also urge the Ministry of Commerce for removal of taxes and duties on import of onion in order to keep prices stable.

Exports of onion to the Far East and Sri Lanka had already been suspended some 15 days back due to increase in local prices which made export unfeasible. “Prices of our competitors — Iran, India, China and Egypt — are now lower in world markets as compared to Pakistan,” he added.

Published in Dawn, September 6th, 2017