Government Implements Restrictions on Onion Export to Manage Supply and Demand
Published on: December 17, 2023.
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The caretaker federal government of Pakistan has taken measures to restrict onion exports due to the continuous rise in prices, according to sources. In order to discourage onion exports, the government has implemented advance payments. Additionally, a minimum export price for onions has been set. These steps have been taken to prevent a potential shortage of onions and to curb further increases in prices.
The decision to impose restrictions on onion exports comes as Pakistan is experiencing a surge in short-term inflation. In the week ending on December 14, inflation increased by 43.16%, primarily driven by pulses, rice, and vegetables. Gas prices and electricity tariffs have also contributed to the inflationary pressure.
On an annual basis, several items have experienced significant price increases. Gas charges for Q1 have increased by 1108.59%, cigarettes by 93.22%, chillies powder by 81.74%, wheat flour by 81.40%, garlic by 71.17%, rice basmati broken by 64.30%, rice IRRI-6/9 by 60.64%, gents sponge chappal by 58.05%, gents sandal by 53.37%, sugar by 50.52%, gur by 50.42%, and pulse mash by 44.80%. On the other hand, the prices of onions have decreased by 25.11% year-on-year. Mustard oil, vegetable ghee 1kg, bananas, and vegetable ghee 2.5kg have also experienced price decreases.
The Pakistan Bureau of Statistics (PBS) collects data from 50 markets in 17 cities to assess the prices of essential commodities and services. According to the PBS data, prices of 19 items have increased, prices of 10 items have decreased, and prices of 22 items have remained stable compared to the previous week. Sugar, pulse gram, eggs, rice IRRI-6/9, pulse moong, georgette, onion, cooked beef, pulse masoor, shirting, long cloth, and LPG have seen the highest increase in prices on a week-on-week basis. On the other hand, potatoes, tomatoes, tea Lipton, chicken, rice basmati broken, mustard oil, garlic, and vegetable ghee 2.5kg have experienced the most significant price drops.
In conclusion, the caretaker federal government of Pakistan has imposed restrictions on onion exports to combat rising prices. These measures include advance payments and a minimum export price. The country is also facing a surge in short-term inflation, with pulses, rice, and vegetables contributing to the increase. It will be interesting to observe the impact of these measures on the onion market and overall inflation levels in the coming weeks.
Source: [ARY News](https://arynews.tv)
