Iranian Onion Imports Fail to Ease Price Burden in Pakistan's Consumer Market

The import of Iranian onions into Pakistan has not provided the expected relief to consumers, as these onions are being sold at high prices of Rs200-240 per kg, despite their lower quality and taste compared to local varieties. This situation occurs amid significant exports of Pakistani onions to international markets like the Far East, the UAE, and Sri Lanka, following India's decision to ban onion exports since December 8, 2023, to control domestic prices. This ban is slated to continue until March 2024. Despite these exports earning foreign exchange, the need to import expensive Iranian onions to meet local demand has led to high prices domestically.

In January, the Pakistani government attempted to regulate the rising local prices by increasing the minimum export price for onions from $750 to $1,200 per tonne. However, this move has not effectively reduced prices for the end consumers. In the local markets, high-quality local onions are being sold at Rs300 per kg, marketed as "export quality," while the majority of retailers are selling wet onions sourced from Sindh. Due to reports of Iran lowering export duties for onions and tomatoes, there have been suggestions for the Pakistani government to implement a short-term, 15-day ban on onion exports to help control and stabilize the local market rates.