Inflation sparks India-Pakistan onion struggle

[Lankan Ranger]

Inflation sparks India-Pakistan onion struggle

India has initiated talks with Pakistan seeking resumption of onion exports from that country through the land route of Wagah border.

"We have initiated talks and before not too long we are hopeful that we will find solution to this...," External Affairs Minister S M Krishna told reporters here today.

The ministry has also requested Pakistan government to allow export of onions in bulk through rail and ship routes, sources said.

Commerce Secretary Rahul Khullar had yesterday said that a contract has been entered into for Pakistani onion supply at Mundra port at Gujarat.

However, if the supplies have to be diverted from Wagah border for arrival through ship routes, it would take at least few more days to reach India.

Pakistan imposed a ban on export of onions through the land route yesterday after 300 India-bound trucks loaded with about 3,000 tonnes of the commodity had reached the Wagah border near Amritsar.

An official spokesperson said here that the government is trying to resolve the issue with Pakistan. "Government is working on it," she said.

Prices of this vegetable have shot up by Rs 5-10 per kg since yesterday after Pakistan put a curb on onion movement through land route.

Meanwhile, a report from Lahore said that Pakistani traders have expressed disappointment over the decision of their government to put these restrictions.

"Such decisions hamper trade between the two countries and cause wastage of perishable goods. This is in the interest of neither the government nor traders and consumers," said Iftikhar Ali Malik, vice-president of the SAARC Chamber of Commerce and Industry.


The traders demanded that the customs authorities at the Wagah land border clear contracted consignments of 300 trucks.

Before the federal Pakistani government imposed the ban, several traders had bagged major orders from India.

Onion prices have nearly doubled in recent weeks in India, after unseasonable rains this year damaged crops in Maharashtra. Prices for milk, fruit and fish have also shot up. Overall, food inflation hit 18 per cent last month – its highest level in a year.

Inflation sparks India-Pakistan onion struggle

 

[ajtr]

Indian traders stop vegetable supply to Pakistan

AMRITSAR: In a retaliatory move against export of onions to India through land route, the Amritsar-based vegetable exporters Friday refused to send trucks carrying tomatoes and other vegetables to Pakistan via Attari-Wagah land route.

“Today, we will not export vegetables to Pakistan because Pakistan government has put a ban on onion export to India,” vegetable trader Anil Mehra said according to Indian media.

This decision was taken today collectively by about 40 vegetables exporters based at Amritsar. “We took this decision because when we needed vegetables (onion), Pakistan has simply banned the export of essential item,” he said adding that the traders were not bothered about the losses which they would face because of not sending vegetables to neighboring country.

Almost 70 trucks carrying vegetables including tomatoes, ginger, chilies have been withheld by vegetable exporters and were not sent for customs clearance.

“So far, no truck carrying vegetables including tomatoes has crossed over to Pakistan through land route though five to six trucks containing soybean (animal feed) have moved to neighboring country,” a senior official of Customs Department at Amritsar said.

India is a major exporter of vegetables to Pakistan as out of total export via land route, 30-32 percent account for tomatoes alone. Besides, soybean has a share of 55 per cent and remaining with chilly, ginger, potatoes, capsicum, biscuits, raw cotton, etc. – Agencies

India is urging Pakistan to resume onion exports to help ease the strain of rocketing food prices.

Onion prices have nearly doubled in recent weeks in India, after unseasonable rains this year damaged crops in Maharashtra. Prices for milk, fruit and fish have also shot up. Overall, food inflation hit 18 percent last month, its highest level in a year.

Pakistan is also struggling with food inflation, and on Wednesday ordered a ban on land shipments of onions to India.

Indian Foreign Minister S. M. Krishna said Friday the government was in talks with Pakistan to resume shipments.

No comment was immediately available from Pakistan’s Commerce Ministry. –AP

 

[ajtr]

Sri Lanka to buy Pakistani onions

COLOMBO: The price of red onions has crossed Rs340 per kilogramme in retail markets of Sri Lanka and the government has taken measures to import onions from Pakistan.
Price escalation continues as India banned export of onions due to a decline in its production. Reports from Kalpitiya, a major onion cultivation area, said acreage under the crop declined severely. Sinhala radio Neth FM said about 1,800 hectares were under cultivation in previous seasons and this season only 25 hectares have been sown.

 

[Ignited Mind]

Pakistan stops onion supply through Attari

As expected, Pakistan on Thursday stopped the export of onion to India through the Attari-Wagah land route, citing shortage and rising price of the commodity in its own market. The neighbouring country had been sending truckloads of onion to India for the past three weeks, which had given some respite to the local market reeling under severe onion shortage.

With Pakistan stopping supply, the price of onion is expected to go up again. Traders said they knew Pakistan would not be able to sustain supply as demand was too high in India. A special team of the State Trading Corporation (STC) reached the Wagah border on Thursday, hoping to persuade the authorities on the other side to send some trucks to the Indian side.

“But Pakistan withheld the trucks laden with onion,” said Customs officials at Attari. “Our officials are working to maintain supply from other parts of the country to sustain the market’s confidence,” said an STC officer.

Pakistan itself is battling shortage and rising price of onion. In Lahore, the price ranged between Rs 15 and Rs 20 per kg in first week of December when the exports started. But off late, the prices touched Rs 40 .

RK Duggal, Deputy Commissioner, Customs Department at Attari, said the ban was imposed by Pakistan’s Ministry of Commerce.

“We knew Pakistan’s market was not comfortable with the supply. Prices may rise again here,” said Rajdeep Uppal, a trader. He said the rates had gone up in Pakistan, forcing the government there to stop supply.

Terming Pakistan’s decision to ban onion export as “shocking”, India said the issue has been taken up with the authorities concerned in Islamabad.

“It is shocking and unfortunate that Pakistan has banned onion exports to India via land route. We have urged them that the quantities that were to come via the land route should be released,” Commerce and Industry Minister Anand Sharma said in Delhi.

Pakistan stops onion supply through Attari

 

[Ignited Mind]

Pakistan stops onion export

Even as onion prices show no signs of cooling down due to inconsistent supplies, the prices are likely to increase further with Pakistan deciding to ban its export to India through the Wagah border.

Terming it shocking, Commerce Minister Anand Sharma on Thursday said the issue was being taken up with the concerned authorities in Islamabad.

“It is shocking and unfortunate that Pakistan has banned onion exports to India. We have urged them that the contracted quantities should be released,” Mr. Sharma said here. He said the government was also exploring all options.

Reports said authorities in Pakistan on Thursday stopped 300 truckloads of onion bound for India on the Wagah border, saying exports had to be curbed to control prices in their own country.

Mr. Sharma said that State-run State Trading Corporation (STC) and Projects Equipment Commodities (PEC) Ltd. had signed contracts for getting onions from Pakistan. “The matter has been discussed with the High Commissioner in Islamabad, who has already met the concerned officials in the neighbouring country.”

He said decisions taken should be implemented and the convoy of trucks should not have been stopped. Asked whether Pakistan's action was in retaliation to India restricting cotton exports, Mr. Sharma said New Delhi's decision was not aimed at Pakistan. The government had put a ceiling of 55 lakh bales on cotton exports for the current season.

He, however, said a large quantity of onions from Pakistan will be reaching Mumbai via the sea route shortly. The STC has also approached the External Affairs Ministry seeking its intervention in the issue. The STC and PEC were asked to import 300 tonnes and 1,000 tonnes of onions respectively to contain prices in the domestic market, which had skyrocketed to Rs.75-85/kg in retail markets on December 22 and continue to rule at Rs. 45-70/kg in metros.

The National Agricultural Cooperative Marketing Federation of India, which was to store the onions imported from Pakistan and distribute it to retail outlets such as Kendriya Bhandar and Mother Dairy, said trucks were to cross Amritsar by afternoon and reach Delhi on Friday morning, but that did not happen. It has kept its storage facilities ready.

Pakistan, which started exporting onions to India in mid-December had been sending over 300 tonnes of onion every day, mainly through the Wagah border

The Hindu : Business / Economy : Pakistan stops onion export

 

[Gazzi]

Pakistan is itself now seeing its stocks in short supply and has stopped only land route onion supplies.......a measure for the interest of Pakistan as onion prices here are rising sharply also....

WTF is India to define how and when we should give them stock.....Pakistan responded positively to India when their demand was high but now feels the squeeze just like all its neighbours are......they have still allowed sea exports to continue as these are not as much as land route supplies.........

A clever or stupid India thinks its a Pakistan game of stopping exports therefore we'll stop vegetable exports..........just stop all F...ing trade altogether, that will at least Pakistan a way of moving away from India who seems to only see a mirror when dealing with anyone...........

 

[jha]

BTW heard in the news that Pakistan is going to restart onion export...

 

[ajtr]

Srilanka gonna pay better price to pak .onions there are RS.340/kg

 

[deckingraj]

Pakistan is itself now seeing its stocks in short supply and has stopped only land route onion supplies.......a measure for the interest of Pakistan as onion prices here are rising sharply also....

WTF is India to define how and when we should give them stock.....Pakistan responded positively to India when their demand was high but now feels the squeeze just like all its neighbours are......they have still allowed sea exports to continue as these are not as much as land route supplies.........

A clever or stupid India thinks its a Pakistan game of stopping exports therefore we'll stop vegetable exports..........just stop all F...ing trade altogether, that will at least Pakistan a way of moving away from India who seems to only see a mirror when dealing with anyone...........

Relax dude...This is trade and there are no emotions involved when it comes to trade...India has not banned any export of vegetable to Pakistan...it is the traders in Amritsar who have reciprocated to Pakistan banning of onions via land route....They are going to have losses since these are perishable items...They made a mistake of letting their emotions take better of them and will face loss...This is the thumb rule of biz. Follow emotions and be prepared for loss....

Neither Pakistan has done any favor to India by allowing the export of onions nor India when they allowed the export of Cotton.... When prices in their own markets increased both govt. put a ban on exports of their respective commodity....However that doesn't mean the person at recieving end will not try to convince the other...In the same coin your govt. is trying to convince India to fulfill her promise on cotton and we are trying to convince you about your promise...The moment news about Pakistan banning land route came out prices in india shot up by 10 Rupee/KG which is a lot....

Remember land route is faster and more economical as compared to sea and that is the route cause of objection. Moreover the biggest impact is in North India because of unnecassary additional cost of transportation from Mumbai to North India....

I am not sure what were your views on the thread where lot of members were accusing India of back stabbing and what not by banning cotton export to Pakistan though would be interesting to see how they feel now???

 

[deckingraj]

Srilanka gonna pay better price to pak .onions there are RS.340/kg

What??? How come buddy??? Pakistan traders are not going there to sell onions...Sri Lanka is going to buy Onions from Pakistan Market at the rate prevalent there(a little above to cover for the transportation) or whatever is the trade agreement...if such a thing is allowed the way you are suggesting then Pakistan traders will stop selling onions all together in pakistan and will rush their supplies towards Sri Lanka, no????

 

[Icarus]

The reason for stopping onion export is not due to some personal vendetta or because we have found better buyers. The price of onions in Pakistan had shot up to 80 rupees per kilo, ever since the export has stopped, it has fallen to 40 rupees per kg. The difference is quite huge.........

 

[fallstuff]

The vegetable war !!

 

[flameboard]

The reason India got no rains is because Pakistan got all the water. As Indians would say its Karma you block our dams well u get no water to block.

 

[PRACTICAL PATRIOT]

The reason India got no rains is because Pakistan got all the water. As Indians would say its Karma you block our dams well u get no water to block.

even though you are trolling i will give you serious answer.this year INDIA got prolonged rain and due to extra rains onion got harmed.
and pakistan got some extra rain causing flood so who is getting punished for karma?

 

[IamINDIA]

lool the heading is so funny.....

fighting for onions.....


anyway on a serious note ppl are going hungry because of inflation and it must be sorted out