W12 Onion Update: Dutch Prices Decline Amidst Supply Increase, India's Export Ban Extends Global Impact

Published 2024년 3월 28일

In W12 in the onion landscape, the Dutch onion market witnessed a decline in prices for yellow and red varieties, driven by increased supply from the new harvest. Prices on the Goes Marketplace dropped notably for various sizes of yellow onions, reflecting a demand reduction. Similarly, the Emmeloord Marketplace experienced a decrease, with the largest red onions selling at lower prices. Meanwhile, India indefinitely extended its ban on onion exports, surprising traders and impacting global markets. Despite expectations for the ban to be lifted due to significant price decreases, the Indian government decided to prolong it ahead of the upcoming general election. This move will likely affect both domestic and international onion prices, exacerbating challenges in key importing countries like Bangladesh and the UAE, where reliance on Indian exports is significant.

Dutch Onion Market Sees Price Decline for Yellow and Red Varieties

The Dutch onion market is currently experiencing a price decline, affecting both yellow and red varieties. In Monday's trading session, the Goes Marketplace witnessed a price decrease for yellow onions across various sizes due to the increased supply from the new harvest.

The price for onions with a large bulb share of 30 to 60% declined to USD 30.2 per 100 kilograms (kg), compared to USD 34.9/100 kg a week earlier. Similarly, onions with a large bulb share exceeding 60% dropped to USD 32.4/100 kg from USD 37.4/100 kg the previous week.

The Emmeloord Marketplace also reflected a decline, with largest red onions selling at USD 34.1/100 kg.

India Extends Onion Export Ban, Surprising Traders and Impacting Global Markets

India has indefinitely extended its ban on onion exports, initially implemented on Dec-23. This decision comes ahead of the country's upcoming general election and is likely to influence both domestic and international onion prices. Initially set to expire on March 31, 2024, the Indian government extended the export ban indefinitely. This move contradicts expectations from traders who anticipated a lifting of the ban due to significant price decreases witnessed since Dec-23. Onion prices in key producing regions like Maharashtra substantially declined, dropping from USD 52/100 kg in Dec-23 to USD 14/100 kg as of W12. This decline is attributed to the increased supply from the new season crop.

The ban's extension is anticipated to exacerbate existing challenges in various onion-importing countries, including Bangladesh, Malaysia, Nepal, and the United Arab Emirates (UAE). These nations typically rely on Indian exports to bridge domestic supply gaps and have already faced price hikes since the initial implementation of the ban. India is a major player in the global onion market, accounting for over half of Asian onion imports due to its shorter shipping times compared to competitors like China and Egypt. This dominance allows Indian exports to influence regional pricing significantly.