Supreme Court Bans Fruit and Vegetable Export to Control Prices

The recent price hike of vegetables and fruits has drawn the attention of the Supreme Court and led the authorities to ban the export of all agricultural items to control the food inflation.

An increase in exports is causing the aggregate demand to push forward, thus causing inflation.

The petitioner advocate, Zulfikar Ahmed Bhutta, pledged to the Supreme Court to command the secretaries of the cabinet division, trade and commerce as well as chairman of the Competition Commission of Pakistan to develop a plan not just to lower the prices of these items but also ensure its availability to the locals.

One way to do it is by banning exports.

Removing Third Parties

The plan is to design policies that would allow the farmers to directly market their products in the open market, without involving a third party.

Foul policies have encouraged the prices of these necessities to spin out of control due to increase in exports of such items and also due to producers taking advantage of the month of Ramadan, the month in which such commodities are high in demand, said the petitioner.

Violating The Law

Shooting up the price of fruits and vegetables is a crime violating of the fundamental rights which lay under the Articles 3, 35 and 38 of the Constitution.

Not so long ago, the Competition Commission of Pakistan pitched in the idea to monitor the exports and imports on food commodities and control when and how much to export or import, more like a tariff or quota that involves exports as well.

Support Prices

Alongside this, they also suggested setting a fixed support price of declining crops as well as take precautionary measures to maintain a buffer stock in case of an emergency due to shortages.

The petitioner made sure that the National Price Monitoring Committee is holding meetings in order to brainstorm decisions to control current price hike on food commodities.

It seems that the management or arrangements made were not efficient enough or evolved a corrupt mafia who were exploiting resources and creating a food shortage in the market.


Social Media Campaign to Boycott Fruits Because of High Prices Gains Steam

Via Dawn

  • Idiots. Export is very much necessary for the economy. Banning export of fruits and vegetables will badly effect economy.
    Instead SC had ordered to keep an eye on prices and control them and punish people who are involved in hoarding or increasing prices.

    • Amazing. You are exporting high quality fruit at a very low margin, and importing the same fruit to meet local shortfall at the cost of invaluable foreign exchange. For instance, we are exporting our natural, non-GMO apple varieties thereby creating its shortfall locally. To meet that demand, we import (perhaps genetically modified) tasteless third class factory made (figuratively speaking) New Zealand apple by several tons.

      An instant blanket ban is objectionable though. Many exporters have orders yet to be fulfilled. A ban reflects badly on Pakistan’s commitment to its committments :)
      A gradual export ban should accompany an import ban. However, Pakistan is a signatory of different trade pacts. To cater for the situation, exporters of fruits should be slapped with high income taxes and their books should be inspected regularly. Obviously, they are stealing taxes and thats how we can stop them in their tracks without risking violation of our international committments.

    • your solution is even worse. price controls have led to energy shortages, wheat overproduction and in fact high prices of vegetables and fruits because land is devoted to wheat production instead. price controls never work.

      banning exports is a bad idea too. it’ll lower the price of fruits and vegetables in the market and farmers will react to that price signal by reducing production. they’ll produce something else. perhaps wheat which enjoys a guaranteed price of twice the going rate in international markets!

      all in all just let the free market function unhindered.

      • Usually, the land in orchards is used and suitable for fruit production only due to distinct characteristics. Besides, again usually, its not big enough to grow crops or even vegetables. So i dont see a food emergency or devastating consequences of fruit export ban.
        We are not trying to control prices though. We will just restrict unbridled exports and let the free market forces do the rest.

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