Pakistan may restrict onion exports: What impact could this have on European and Central Asian markets?

Published Jan 3, 2024

Tridge summary

Pakistan is considering imposing restrictions on onion exports due to increasing domestic prices, despite prices still being lower than last year and the devaluation of the local currency. The main onion markets for Pakistan are Malaysia, Sri Lanka, and the United Arab Emirates, with the country becoming a net importer following floods in 2022. Any restrictions on onion exports from Pakistan could significantly impact markets in Europe and Central Asia, leading to higher prices and increased imports from other countries.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

With this, Pakistan could join the long list of countries that have imposed bans or restrictions on onion exports in the last 12 months. Among these countries: Egypt, Turkey, Uzbekistan, India, Tajikistan, Kyrgyzstan, Kazakhstan and others. The main reason for possible restrictions on the export of fresh onions from Pakistan is the increase in domestic prices of this vegetable, which remains one of the main products in the consumer basket. However, it is important to take into account that, firstly, onion prices are still lower than last year, and secondly, the local currency continues to devalue against the US dollar, which affects prices much more than the supply and demand situation. The main onion markets in Pakistan are Malaysia, Sri Lanka and the United Arab Emirates. Overall, Pakistan is one of the major exporters of onion to the Gulf countries. Annual exports of fresh onions from Pakistan range from 300,000 to 450,000. tone. In 2022, floods in Pakistan lost a significant ...

Source: E-warzywnictwo