Onion, not just a staple vegetable but a crucial export for Pakistan, is facing a crisis with wholesale prices more than doubling across Punjab in a month. Retail prices in Lahore surged from Rs. 132-140 to Rs. 152-160 per kg within a week. Prices across various cities, including Lahore, Multan, Okara, Gujranwala, and Rawalpindi, have seen a staggering rise of 87 to 103 percent in the last month.
The average onion prices skyrocketed to nearly Rs. 14,100 per 100 kg by December 6, compared to Rs. 6,800 per 100 kg just a month ago. Market experts attribute this surge to multiple factors, including lower supplies and robust export demand.
A market consultant, speaking to media, stated, “Multiple factors, including lower supplies and robust export demand, have contributed to this surge.” He pointed out that India’s imposition of a 40 percent export duty in August, coupled with strict border restrictions impacting informal shipments from Iran and Afghanistan, has exacerbated the situation.
While India, the world’s largest onion exporter, imposed export duties due to domestic shortages, it seems to have had minimal impact on regional markets. Pakistan exported nearly $145 million worth of onions in 2021, primarily to Malaysia, Sri Lanka, United Arab Emirates, Qatar, and Oman. However, exports dwindled after devastating floods.
Farmers confirm specific diseases in major onion production regions in Sindh and Punjab during the past two years, contributing to the supply shrinkage. Onion arrivals in Punjab’s markets during November 2023 are down 23 percent compared to the same month in flood-hit 2022 and 32 percent against November 2021.
Sindh, not Punjab, holds the largest share (40 percent) in the country’s total onion production of two million tons, followed by Balochistan (33 percent), Punjab (16 percent), and KP (11 percent).
Farmers cite soil-borne diseases, possibly fungal or bacterial, with symptoms including yellowing and wilting of plants, leading to rotting bulbs underground. A lack of expertise in handling such issues and insufficient advisories exacerbate the problem.
Mahmood Nawaz Shah, President of Sindh Abadgar Board (SAB), highlighted the challenges faced by farmers in Sindh, where onion cultivation was less this year due to both lower yields and disease outbreaks. He advocated for a proper diagnostic infrastructure to understand the issues and make informed decisions for the future.
