Onion exports: Pakistan briefly triumphs over India.

In Islamabad, Pakistan, onion farmers and exporters are celebrating a significant increase in exports over recent months, marking an unexpected victory at the expense of their counterparts in India. The two South Asian rivals, both major onion producers, found Pakistan seizing a rare opportunity when India enforced an export ban last December due to a local production decline preceding national elections. This move left a gap in the global onion market, which Pakistan swiftly began to fill, exporting over 220,000 tonnes of onions between December and March, exceeding its usual annual volume. Waheed Ahmed, from the All Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association (PFVA), attributed this success to prompt action and government support.

However, the export surge led to domestic shortages and price hikes, affecting ordinary Pakistanis reliant on onions as a staple. While the increased revenue from exports bolstered Pakistan's foreign reserves, reaching $9 billion this month, it also resulted in onion prices soaring domestically. The inflated prices burdened households, particularly those with lower incomes, exacerbating the challenges of affordability for essentials. Despite this, recent weeks have seen a decline in onion prices, attributed to India's resumption of exports and improved market conditions.

Exporters aimed to strike a balance between meeting international demand and ensuring sufficient supply in the domestic market. While acknowledging the role of opportunism in maximizing exports during the limited window before export restrictions, they emphasized the need for government intervention to address retail price disparities. For Ahmed, the export opportunity served as a much-needed boost for farmers recovering from the 2022 floods, highlighting the importance of investing in agricultural practices to enhance productivity and resilience.