government to restrict onion exports in a bid to stabilize prices
Published on: December 18, 2023.
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Restrictions Imposed on Onion Exports in Pakistan to Tackle Rising Prices
The interim federal government of Pakistan has taken action to restrict the export of onions in response to the sustained increase in prices. To discourage onion exports, the government has implemented measures such as requiring advance payments and setting a minimum export price for the commodity.
These steps have been introduced to address the economic challenges posed by soaring costs of essential items like pulses, rice, and vegetables, as the country grapples with high inflation. In the week ending on December 14, inflation reached 43.16%, marking the fifth consecutive week of inflation surge.
The surge in inflation can be attributed to elevated gas prices and electricity tariffs compared to the previous year. On an annual basis, significant price increases were observed for various items, including gas charges, cigarettes, chillies powder, wheat flour, garlic, and certain types of rice.
However, there has been a decrease of 25.11% year-on-year in the prices of onions. The prices of mustard oil, vegetable ghee (1kg and 2.5kg), bananas, and other items have also seen declines.
To monitor the fluctuating prices of essential commodities, a weekly price index is composed of 51 items surveyed across 50 markets in 17 cities. The index revealed that out of the items tracked, 19 experienced price increases, 10 saw decreases, and 22 remained stable compared to the previous week.
Some notable week-on-week increases were observed in sugar, pulse gram, eggs, rice, and various pulses. On the other hand, potatoes, tomatoes, Lipton tea, chicken, and certain edible oils witnessed significant decreases in prices.
By imposing restrictions on onion exports and implementing measures to stabilize prices, the Pakistani government aims to prevent an anticipated shortage of onions and curb further escalation in prices. These steps will provide relief to consumers who have been burdened by rising inflation and high costs of essential items.
Source: [BOL News](https://www.bolnews.com)
