In a concerning development for consumers across Pakistan, onion prices have reached unprecedented levels, causing financial strain on households.
According to recent data released by the Pakistan Bureau of Statistics (PBS), the soaring onion prices have raised alarm bells among policymakers and the public.
Onion Prices Reach Alarming Heights
The PBS data reveals that onion prices have surged to as high as Rs. 320 per kg, marking a sharp increase in the cost of this essential kitchen staple, leaving consumers grappling with the economic burden of rising food prices.
Regional Disparities in Prices
The onion price surge is not uniform across the country. Different regions are experiencing varying levels of price hikes. For instance:
- In Islamabad, onion prices have skyrocketed to Rs. 320 per kg.
- Neighboring Rawalpindi is not far behind, with prices as high as Rs. 310 per kg.
- Gujranwala is witnessing onion prices at Rs. 240 per kg.
- Sialkot residents are facing onion prices at Rs. 270 per kg.
- Lahore and Faisalabad are grappling with prices at Rs. 240 per kg and Rs. 220 per kg, respectively.
- Karachi, the largest city in Pakistan, is not immune to the crisis, with prices at Rs. 220 per kg.
- Peshawar, in the northern region, has recorded onion prices at Rs. 270 per kg.
The national average price of onions, according to PBS data, stands at approximately Rs. 230 per kg. These soaring prices have created significant financial challenges for households across Pakistan.
India’s Onion Export Ban and Its Impact
One of the primary factors contributing to the surge in onion prices is India’s ban on onion exports, which was implemented in early December. This ban by India disrupted the onion supply chain, leading to increased demand for Pakistani onions.
The spike in export demand, combined with the limited availability of onions in the local market, resulted in price hikes that have hit consumers hard.
Government Measures and Their Effectiveness
To address the crisis, the government recently raised the minimum export price (MEP) of onions from $750 per tonne to $1,200 per tonne. However, this measure has so far failed to alleviate the burden on consumers in the local market.
The escalating onion prices in Pakistan pose a significant challenge to consumers and the government.