W44: Onion Update

In W44 in the onion landscape, India's onion prices have risen, prompting traders to import onions from Afghanistan. The onion prices stood at USD 0.66 to 0.72 per kilogram (INR 55 to 60/kg). The Attari Integrated Check Post receives three trucks daily carrying over 65 metric tons (mt) of onions sent to Delhi's fresh agricultural produce market. Market observers predict an increase in Afghan onion imports if domestic market supply doesn't return soon.

Furthermore, the Indian government has set a minimum price of USD 800/mt for onion exports until December 31 to increase local market supply and control prices. The decision will take effect from October 29. An additional 200 thousand tons of onions and processed onions will be purchased for storage, including Bangalore Rose and Krishnapuram onions. The move aims to maintain affordable onions for domestic consumers as the quantity of 2023 rabi onions stored decreases. The minimum price is approximately USD 0.80 per kilogram (INR 67/kg).

Bangladesh is likely to experience higher onion prices due to recent Indian regulations. The Indian government has introduced a minimum export price for onions and imposed a 40% duty on exports, which has caused a significant increase in onion import prices in Bangladesh, which mainly relies on Indian onions to meet its domestic demand. Indian onion importers offered USD 150 to 205/mt before the minimum export price was imposed, according to the Clearing and Forwarding Agents Association in Bhomra. The import price will rise four times, with the port price.

Onionprices in the Netherlands are reportedly decreasing due to potential pressure from the Polish market. Stock exchanges Emmeloord and Middenmeer have reported a decrease in yellow onion prices. Market operators are speculating whether prices will align with the Polish market or if exports will increase only then. On October 26, buyers were willing to pay USD 0.31/kg (EUR 0.29/kg) for onions with a 30 to 60% share of thick bulbs and USD 0.32/kg (EUR 0.30/kg) for larger sizes. The situation's development depends on CBS harvest estimates and November inventory, which will significantly influence prices for the rest of the storage season.

The Philippine Department of Agriculture (DoA) reports that the retail prices of onions have recently reduced, with the red onions declining from USD 2.34 to 2.18/kg (PHP 140 to 130/kg) in W44. Similarly, white onions stood at USD 2.01/kg (PHP 120/kg). According to the Assistant Secretary of Agriculture, these price changes were stable. In Metro Manila markets, retail prices as of October 31 varied: local red onions ranged from USD 2.01 to 3.18/kg (PHP 120 to 190/kg), local white onions between USD 2.01 to 2.68/kg (PHP 120 and 160/kg), imported white onions between USD 2.01 to 2.85/kg (PHP 120 and P170/kg).

Lastly, South Jeolla Province of South Korea is accepting crop disaster insurance applications for onions until November 24. The province supports 90% of premiums to protect farms from recurring natural disasters. In 2022, the Jeonnam region had a 62% subscription rate, with 2.1 thousand farms covering 1.8 thousand hectares (ha) and receiving USD 6.1 million (KRW 8.1 billion) in compensation.