Onions and shallots market in Pakistan

Earlier Report Observations

From 2018 to 2021, the market for onions and shallots in Pakistan remained stable, with volumes hovering between 1 980 and 2 000 thousand tons. Increased yields and expanded harvested area, which peaked in 2021, supported domestic production. However, a significant rise in exports, particularly in 2021, limited the growth of domestic availability, while fluctuations in onion import prices in 2018 and 2020 affected the cost of inbound shipments.

A sharp shift occurred in 2022 and 2023. The market volume jumped to 2 423 thousand tons in 2022, driven by a surge in imports to 493 thousand tons and a drop in exports. The following year, the market contracted to 2 034 thousand tons as production fell to 1 843 thousand tons and exports rebounded. A key driver was India's export ban on onions imposed in December 2023, which created an opportunity for Pakistan. Pakistani exporters responded aggressively, leading the government to set a minimum export price of $1,200 per ton and later impose a temporary export ban until April 2024 to curb domestic price inflation. This push opened new markets in the Middle East and Asia but also depleted local stocks and drove up consumer prices.

In 2024, after India lifted its export ban, domestic prices in Pakistan cooled. However, the market continued to face structural challenges, including limited storage capacity and shorter shelf life compared to Indian onions, which constrained export potential. Government initiatives to improve packaging and quality standards aimed to enhance competitiveness, while growth in the onion powder segment, fueled by the food processing industry, added a new dimension to the sector.

Production onions and shallots in Pakistan

In kind, 2017-2020, K t

On a global scale, Pakistan ranked as the 6th largest producer of onions and shallots between 2017 and 2020.

Top producers of onions and shallots, 2017-2020

World map of production of onions and shallots, 2017-2020

In 2020, Pakistan produced 2 122 thousand tonnes of onions and shallots, marking a 2.0% increase from the previous year. Over the 2017-2020 period, production grew by 15.8%, with a compound annual growth rate of 5.0%. The largest decline occurred in 2019 at 1.9%, while the most significant increase was recorded in 2018 at 15.6%.

Annual dynamics of production in Pakistan in kind, 2017-2020, K t

Exports onions and shallots from Pakistan

Exports in kind, K t

The data shows irregular changes, reflecting a volatile market environment. Exports varied significantly, with a 5.1-fold difference between the low in 2017 and the high in 2020. In 2020, Pakistan's exports of onions and shallots reached 304.0 thousand tonnes, an 82.8% increase from the prior year. The largest decline was in 2019 at 21.1%, while the most substantial increase occurred in 2018 at 251.0%.

Annual dynamics of product's exports from Pakistan in kind, 2017-2020, K t

From 2017 to 2020, Malaysia, the United Arab Emirates, and Sri Lanka were the key destinations for Pakistan's onion and shallot exports in volume terms. Malaysia accounted for 35.3% of exports, the United Arab Emirates for 17.7%, and Sri Lanka for 16.4%, together representing 69.4% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Pakistan in kind, 2017-2020

Exports in value, M $ US

Onions and shallots exports from Pakistan increased for the third consecutive year. In 2020, exports totaled 124.0 million US dollars, an 84.3% gain compared to 2019. Between 2017 and 2020, exports surged by 942.9%, equating to an annualized growth rate of 118.5%.

Annual dynamics of product's exports from Pakistan in value, 2017-2020, M $ US

Throughout 2017-2020, Malaysia, Sri Lanka, and the United Arab Emirates remained the largest markets for Pakistan's onion and shallot exports in value terms, collectively accounting for 69.8% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Pakistan in value, 2017-2020

Imports onions and shallots to Pakistan

Imports in kind, K t

Market performance showed noticeable fluctuations during this period. Imports varied by a factor of 3, with the low in 2018 and the peak in 2020. In 2020, Pakistan's imports of onions and shallots amounted to 165.2 thousand tonnes, a 93.0% increase from the previous year. The minimum value was recorded in 2018 at 54.4 thousand tonnes, which also saw the largest decline of 28.2%.

Annual dynamics of product's imports to Pakistan in kind, 2017-2020, K t

From 2017 to 2020, Pakistan's imports of onions and shallots in volume terms were highly concentrated on Afghanistan, which accounted for 97.1% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Pakistan in kind, 2017-2020

Imports in value, M $ US

The data reveals irregular changes, indicating a volatile market environment. Imports varied by 3.2 times, with the low in 2018 and the peak in 2020. In 2020, Pakistan's imported onions and shallots were valued at 28.9 million US dollars, an 84.8% gain compared to 2019. The minimum value was in 2018 at 9.1 million US dollars, which also experienced the largest decline of 32.6%.

Annual dynamics of product's imports to Pakistan in value, 2017-2020, M $ US

Over the 2017-2020 period, Afghanistan was by far the main source for Pakistan's imports of onions and shallots in value terms, accounting for 96.9% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Pakistan in value, 2017-2020