Why is Pakistan grappling with skyrocketing onion prices?

KARACHI: Pakistan is currently grappling with a surge in onion prices, adding to the financial woes of consumers already burdened by high inflation. The continues increase in onion costs has created significant holes in the pockets of citizens, further straining their finances. With inflation already at elevated levels, the additional pressure from skyrocketing onion prices has intensified the economic challenges faced by households across the country.

Onion prices have reached staggering heights across Pakistan, particularly in Sindh province, where premium quality onions are being sold at Rs285 per kilogram. While Iranian and Tajikistani yellow onions offer a relatively cheaper alternative in certain areas of Sindh, consumer preference tends towards the more traditional red onions.

Insights into Onion Cultivation

Pakistan Agriculture and Horticulture Farm President Sheikh Imtiaz Hussain told Independent Urdu that Pakistan stands as the sixth-largest onion producer globally, boasting an annual output surpassing 2 million metric tons.

He said that Sindh accounts for 40 per cent of the nation’s onion cultivation, with Balochistan contributing 33 per cent, followed by Punjab and Khyber Pakhtunkhwa at 16 per cent and 11 per cent, respectively.

He said that Pakistan’s favourable climate allows for year-round onion cultivation, with a seamless transition of supply of the product from Sindh, Punjab, Khyber Pakhtunkhwa and eventually Balochistan the whole year.

Navigating Onion Crisis

Hussain attributed the current scarcity of red onions to flood-induced delays in Balochistan, resulting in a sharp spike in prices. However, he anticipated relief within 15 to 20 days as Balochistan’s onion harvest is ready to enter the market.

Imports and Export Dynamics

Major trading company, Imtiaz Enterprises, said onion is currently being imported from Iran and Tajikistan. The domestic market sees a steady supply of onions from Sindh between September and April, followed by Balochistan’s produce from March to August, and Khyber Pakhtunkhwa’s from August onwards, being enough to meet Pakistan’s needs for 12 months.

 It said that with China and Myanmar specializing in yellow onions, and India and Pakistan in red, Pakistan has the potential to capitalize on onion exports for foreign exchange earnings.

Market Committee Head Version

Mohammad Afzal, head of the Vegetable Market Committee, attributed the current shortage to delays caused by floods and governmental inaction, resulting in dwindling onion reserves in Sindh. However, he expressed optimism as Balochistan’s onions are expected to enter the market in the coming days.

Market Price Disparities

According to the rates issued by the Karachi Commissioner on Tuesday, the price of top-grade onions is Rs180 per kilogram, while in the market, the same onions are available for Rs250 per kilogram. Iranian and Tajikistani onions offer a more affordable option, ranging from Rs100 to Rs160 per kilogram.