The government of Pakistan officially notified the ban on the export of Onion. According to the Ministry of National Food Security and Research, this ban will be till May 31th 2020. No one will be allowed to export Onion. But the exporter advises the government to allow the export of onions which are already on the port. They already load the tonnes of onions on the port. And now if they don’t let them, they may face significant losses and lose their client for a lifetime. The government is not allowing the export of onions because if they start exporting all onions outside the country, then the government needs to start increasing the price of onions which may result in disturbance to the economy of the country.
The patron-in-chief of all Pakistan Fruits and Vegetable exporters. Importers and Merchant Association (PFVA) Wahid Ahmed say that if the government did not allow the onion exporter to sell their Onion which already transported to the port, then they may face the loss of $2 million. They also said that the government needs to allow the export of onions which are already transported to the port. He also says that;
“More than 170+ onion containers are stopped at the port and have to be shipped before time.”
Later, Wahid Ahmed wrote a letter to Commerce Advisor Abdul Razak Dawood saying that the government should remove the ban on the export of Onion. The country already has a vast majority of Onion which is enough for the whole Country. And if the government doesn’t face any issues, then the government doesn’t need to increase the prices of Onion. But still, if they ban exporting of Onion, then the country would be deprived of foreign exchange earning. Exchange of foreign currency will help in increasing the economy of the whole country.
He further said that exporters already take the advance payment from the buyers and now after the ban, they may be unable to ship the onions. As a result, they may be able to lose their client for a lifetime and also going to suffer from a big loss. He said that onion exporters have already taken a massive amount of Onion from the farmers to export to their foreign clients. So if they didn’t ship Onion to their client, they might face a big loss as well as long term client.
Waheed Ahmed, the patron-in-chief of the association, said that the government should need to tell onion exporters before 10 days of implementing this law. First, they need to inform all exporters then need to give some days to complete all their orders as soon as possible. The government of India is following this method. They report all exporters 10 days before they are going to implement any new order.
On the exporter request, the government notified all the exporters that they are going to stop this ban and you are allowed to complete your foreign order before 10 days. They also said that after 10 days onion export is going to be banned all over Pakistan.