The Holland Onion Association reported a decline in Dutch onion exports from W27 to W47 in 2023. This indicates a significant decrease compared to the same period in the 2022/23 season, with 520.12 million kilograms (kg) of onions exported, reflecting a substantial drop of 97.62 million kg from the previous year's figure of 617.75 million kg. Notably, exports from the Netherlands to Poland also witnessed a notable decrease, plummeting from 6.26 million kg in the 2022/23 season to a mere 478.47 thousand kg in the current cycle.
As of W1, the sowing of Rabi onions in Maharashtra and Karnataka regions of India experienced a notable decline of up to 20%, prompting experts to forecast a potential 10 to 15% year-over-year (YoY) reduction in overall onion acreage for the 2023/24 season. This decrease in production raises concerns about heightened food inflation around Mar-24 and Apr-24, particularly as it coincides with the Lok Sabha polls. The diminished reservoir levels in primary onion-producing states have adversely impacted irrigation prospects, forcing a shift away from Rabi onion cultivation and contributing to the anticipated decrease in production.
Egypt has extended the ban on onion exports until March 30, 2024 to address the surge in retail prices and enhance availability in the local market. The export ban was initially planned for only three months but was extended to counteract a significant increase in onion prices, reaching as high as USD 1.13/kg (EGP 35/kg) compared to USD 0.39/kg (EGP 12/kg) a year ago in certain local markets. The government's objective is to ensure the continued affordability of onions, a traditional vegetable and staple in Egyptian cuisine, for its citizens.
Peruvian fresh onion exports saw a slight boost in 2023 due to increased European demand and Egypt's export ban on onions. Between Jan-23 and Nov-23, Peru exported 227.27 thousand tons, generating revenues of USD 91 million. Spain ranked second most important destination, followed by the United States (US) with 58% market share. The US experienced a 24% YoY decrease in volume and a 16% YoY increase in value, while Spain increased volume and price by 53% and 91%, respectively. Colombia ranked third with 46.42 thousand tons worth USD 10 million.
Pakistani onion prices rose to USD 2.89/kg (INR 240/kg) in local markets on January 11, 2024, due to the export ban imposed by India. Retailers blame the steep prices on substantial exports, forcing consumers to pay inflated prices for essential vegetables. The President of the Wholesale Vegetable Association expressed concern for consumers affected by the soaring prices and emphasized the abundant onion production in 2024.
The Indian government plans to build artificial intelligence-(AI)based warehouses to reduce onion wastage, which costs around USD 13.23 thousand (INR 1.1 million) annually due to the decay of 25% of Rabi onions in traditional storage facilities. Set to begin in March, the pilot project will use Internet of Things (IoT) to provide real-time data on stored onions. The government will also manage its onion buffer stock, stabilizing retail prices during high-demand periods. The first AI-based storage facility will be established in Nashik, followed by other onion-growing regions. The number of AI-based storage facilities is expected to increase by 500 centers over the next three years.
The Indian government is exercising caution in reconsidering the export ban on onions despite a significant price decline. A recent assessment of the nation's onion supply has resulted in the consensus that lifting the ban is presently impractical. Mandi prices in crucial onion-producing districts have witnessed a substantial decrease, dropping from USD 44.51 to 48.11/100kg (INR 3,700 to 4,000/100 kg) to USD 18.04 to 21.65/100kg (INR 1,500 to 1,800/100kg). Despite the pressure from farmers and traders urging the government to reconsider, concerns about the stability of the onion market have led to the continuation of the export ban.