Indian traders retaliate, stop vegetable supply to Pakistan via land route

[Parashuram1]

Are not the two of you supposed to be majority agrarian countries, supplying consumables to the rest of the world? How is it that both of you have vegetable crisis?

 

[Markus]

Thread deleted by TaimiKhan
Reason: check for already posted threads and what has onions to do with world affairs.

Just few threads below this one, taimi bhai deleted a thread and wrote the above.
Let me ask again,

What vegetables has to do with world affairs?

IMO:-

This is not a normal case of import/export of onions or any other vegetables. Both countries are facing shortages of essential food items and in such a case, if one country suddenly decides to stop export of one item, this may result in retaliation from the second side and given India and Pakistan's history of distrust, such event may soon mouthball into some major political conflict.

Also, the World Section says this:-

Discussions related to the changing world environment, strategic issues, and important political changes in the world.

I thought this case comes best under this section, hence was posted in World Affairs.

However, as we hear that Pakistan has allowed to export of onions again to India, so if the mods feel like closing/deleting this thread, they are most welcome to do so.

 

[Markus]

Are not the two of you supposed to be majority agrarian countries, supplying consumables to the rest of the world? How is it that both of you have vegetable crisis?

Destruction of food crops in Pakistan due to floods and in India due to unseasonal rains are the prime reasons for this shortage being faced by both the countries.

 

[Awesome]

You guys should try out Pakistani hari mirch. I buy all regular grocery from the hypermarts here but for mirch I go to a special place where they import it from Pakistan.

There is just nothing comparable. Due to the floods, onions may just have been in short supply and hence they were temporarily on hold for local consumption. I don't see the reason for not selling them to India and getting some money out of it.

I think the only thing where exports may be banned is going to be rice as Pakistan and India are in deep competition over it and India has already done a few underhanded tactics on our rice and hence we need to be careful of that.

 

[Veeru]

You guys should try out Pakistani hari mirch. I buy all regular grocery from the hypermarts here but for mirch I go to a special place where they import it from Pakistan.

There is just nothing comparable. Due to the floods, onions may just have been in short supply and hence they were temporarily on hold for local consumption. I don't see the reason for not selling them to India and getting some money out of it.

I think the only thing where exports may be banned is going to be rice as Pakistan and India are in deep competition over it and India has already done a few underhanded tactics on our rice and hence we need to be careful of that.

And i suggest you to try The World's Hottest Chilli-Bhut Jolokia from India.

The Bhut Jolokia (also known as Naga Jolokia, Ghost Chili, Ghost Pepper, Naga Morich) is a chilli pepper originating in Assam, India, that has earned Guiness World Records' recognition as the World's Hottest Chilli Pepper. Now some says that a UK chilli is hottest by razorthin margin still Indian chilli is undisputed in Asia and second hottest in the world undisputedly.

The World's Hottest Chilli-Bhut Jolokia!

 

[Markus]

Pakistan yet to decide on resuming onion exports to India

ISLAMABAD: Pakistan is yet to decide on India's request for resumption of onion exports through the Wagah land border crossing after it was banned earlier this week to stabilise prices in domestic markets.

Indian High Commissioner Sharat Sabharwal has taken up the matter with Pakistani authorities, who have not yet conveyed a formal response to the request to resume exports, officials of the High Commission said.

Efforts are also being made to get Pakistani authorities to clear consignments that had already been contracted for, the officials said.

Customs officials and traders in Lahore, from where the consignments were being sent to India, too confirmed that the ban had not yet been lifted.

Officials said they were awaiting word from the Commerce and Foreign Ministries, which would decide on India's call for resumption of exports.

Pakistani authorities stopped onion exports via Wagah on Wednesday, ostensibly to control surging prices in markets across the country.

Officials and some trade lobbies contended that prices had risen since the exports to India began in mid-December.

Sources said concerns about the under-invoicing of onion consignments sent via the land route had influenced the decision to ban exports through Wagah.

Exports by sea are still allowed as the invoicing system for maritime consignments is less vulnerable to irregularities, sources said.

Contrary to media reports that Pakistan might face a shortage of onions in the coming months due to exports to India, sources in business circles said the output in areas like Sindh had been good despite the devastation caused to agricultural lands by last year's floods.

Prices of onions in India shot up by Rs 5 to Rs 10 per kg since Thursday after Pakistan curbed exports through the land route.

Onion exports began late last year after prices registered a sharp rise in India.

Pakistan yet to decide on resuming onion exports to India - The Times of India

 

[Capt.Popeye]

Are not the two of you supposed to be majority agrarian countries, supplying consumables to the rest of the world? How is it that both of you have vegetable crisis?

Agrarian majority, both countries are. But agrarian surplus is the real issue; the surpluses are shifting all the time. The biggest reason is the vulnerability to the vagaries of nature and climatic changes. Coupled with poor supply chain and storage management. So in short "seed to feed" supply is a constantly changing variable.

Now the GoI is encouraging large investment overseas in agro-ventures. Since they are all by large corporates, they may be able to overcome these issues. Simultaneously, SCMS is being improved in India.

 

[luckyyy]

one thing i couldn't understand , if it was the matter of rise in onion price in pakistan then why pakistan only ban the land -route , whereas the onion trade through sea-route is going on....

 

[DESERT FIGHTER]

one thing i couldn't understand , if it was the matter of rise in onion price in pakistan then why pakistan only ban the land -route , whereas the onion trade through sea-route is going on....

To discourage it.

 

[DESERT FIGHTER]

Are not the two of you supposed to be majority agrarian countries, supplying consumables to the rest of the world? How is it that both of you have vegetable crisis?

MASSIVE,DESTRUCTIVE FLOODS IN PAKISTAN>???????????

 

[StingRoy]

one thing i couldn't understand , if it was the matter of rise in onion price in pakistan then why pakistan only ban the land -route , whereas the onion trade through sea-route is going on....

Two reasons..
(1) To procure the onions from large suppliers who can handle such large single point orders and not the small traders which becomes harder for the GoP to control and regulate the prices internally.
(2) Sea-route importing will discourage importers in India since the onions become more expensive when coming from sea route.

 

[luckyyy]

Two reasons..
(1) To procure the onions from large suppliers who can handle such large single point orders and not the small traders which becomes harder for the GoP to control and regulate the prices internally.
(2) Sea-route importing will discourage importers in India since the onions become more expensive when coming from sea route.

so the idea is to keep the onion price high in india despite the export...

 

[StingRoy]

so the idea is to keep the onion price high in india despite the export...

More or less yes.
Exporting through ocean route will not only make it an expensive deal but also take longer to reach the markets which gives the markets to correct themselves if there are any chances of such thus increasing the risk for the importers (in case the domestic prices come down on its own).