W3 Onion Update: Central Asia's Onion Export Challenges in 2024, The Philippines Halts Imports Amid Oversupply, and Nigeria Grapples with ECOWAS Sanctions

Central Asian Markets Face Onion Price Declines and Export Challenges Since the Beginning of 2024

Onion sales in Central Asia, particularly in Uzbekistan, face challenges due to lower prices than harvest, leading to a decline in market prices. In Kazakhstan's Almaty region, farmers are struggling to sell their harvested onion crop, and the Ministry of Trade advises exporting onions. However, this leads to significant price decreases due to expensive transport to European Union (EU) countries or the Middle East. In Russia, farmers face the same problem due to an excess of onions on the market. The Almaty region is the largest net importer of vegetables in the Central Asia region, and its dependence on imports is growing. Afghan business people have expressed interest in purchasing onions in Kazakhstan, and active exports from Kazakhstan to Afghanistan have begun since the new year.

Onion Growers in Almaty Region Navigate Challenges with Multiple Remedies Explored

Onion growers in the Almaty region of Kazakhstan are encountering challenges in liquidating their current inventories. The head of the Ministry of Trade and Integration Committee has proposed several remedies to assist them. Initially, onion growers were notified about available vacant spaces at the Altyn Orda market, previously arranged by the Trade Committee with support from the regional akimat. Secondly, they were briefed on selling their products to prominent retail chains and the accompanying documentation requirements. Thirdly, supplying onions to regional Special Economic Zones (SECs) was discussed, with a deposit necessary for forward contracts. Lastly, the possibility of exporting onions to other countries was explored, with proposals forwarded to Uzbekistan, Afghanistan, and Iran through Qaztrade JSC. Notably, Afghan entrepreneurs have shown interest in purchasing onions, leading to active exports to Afghanistan at the start of 2024.

Philippines Suspends Onion Imports Amidst Oversupply After 2023 Supply Shortages

The Philippines has temporarily suspended onion imports to prevent further depressing domestic prices due to a supply glut. The suspension may be extended through Jul-24 if domestic supply remains sufficient to meet local demand. The increased onion supply has reduced farm gate prices between USD 0.89 and 1.24 per kilogram (PHP 50 and 70/kg), potentially falling further in Feb-24. In Nueva Ecija, where 97% of onion production in Luzon comes from, prices have dropped to as low as USD 0.36/kg (PHP 20/kg). The Agriculture Secretary stated that no onion importation until July is agreed upon, but imports will be made earlier if there is a sudden supply shortfall. The country's onion output remains at risk from El Niño, as warmer temperatures and a prolonged dry spell could spawn more pests that could undermine onion production. The Philippine Chamber of Agriculture and Food Inc. expects a surplus onion supply with an additional 40% of the land area planted with the crop.

ECOWAS Sanctions Hit Nigeria's Onion Industry, Prompting Financial Losses and Supply Challenges

Nigeria's onion industry is facing financial losses due to the Economic Community of West African States (ECOWAS) sanctions on Niger, according to the president of the National Onion Producers, Processors and Marketers Association of Nigeria (NOPPMAN). The rising onion prices are attributed to reduced onion harvests, input difficulties, supply shortfalls in the Kano and Sokoto states, and the need to meet domestic and export demand. The closure of borders with the Niger Republic has further exacerbated the situation, leading to significant post-harvest losses.

Indian Export Ban Impacts Onion Prices in Indian and Nepalese Markets

Indian and Nepalese onion prices have fallen due to the Indian government's export ban, which has caused a surge in prices across Asia. Enforced until March 31, the ban has led to a rise in onion prices in Maharashtra and Nepal. The Indian government is considering lifting the ban to prevent further price drops. However, traders believe that Nepal's normal supply of onions has reduced prices. The Indian government is assessing the situation and may reconsider lifting the ban. The Nepali market received 82 metric tons (mt) of onions after the export ban, and the wholesale price of onions has been hovering at around USD 0.96/kg (INR 80/kg).

India Pledges to Ease Export Restrictions on Essential Commodities to Support Bangladesh's Market Stability

The Indian Prime Minister, Narendra Modi has pledged to Bangladesh's Prime Minister, Sheikh Hasina to ease export restrictions on essential commodities like sugar, onions, rice, and wheat. The decision aims to reduce rising freight charges and commodity prices, particularly for onions and other consumer goods crucial to Bangladesh. The move seeks to maintain market stability, mitigate inflation, and curb market manipulation.

Pakistan Grapples with Soaring Onion Prices Amid India's Export Ban Impact

Onion prices in Pakistan have surged, reaching USD 3.85/kg (PKR 320/kg) in Islamabad and USD 1.12/kg (PKR 310/kg) in Rawalpindi. The surge is linked to India's export ban in Dec-23, causing a rise in demand and triggering local prices. Despite government measures like increasing the minimum export price, the local market grapples with the soaring prices.

Spain's Onion Industry Faces Limited Stock and Quality, Anticipates Price Surge

Spain's onion production grapples with limited stock and minimal quality, with prices ranging from USD 0.54 to 0.60/kg (EUR 0.50 to 0.55/kg) for direct sowing onions to USD 0.65 to 0.71/kg (EUR 0.60 to 0.65/kg) in Ciudad Real. The industry buys poor-quality batches for USD 0.27 to 0.38/kg (EUR 0.25 to 0.35/kg) or more. The stock of onions stored in cold rooms is expected to be used early in Feb-24, with no onions left in storage by early Apr-24. Demand remains stable, and prices will rise after cold storage stocks are used. The German market is crucial for Spanish onion exports, with Germany being the destination for over 43% of onions shipped to the EU-27 between Jan-23 and Sep-23. The situation in the Netherlands and New Zealand onions is also causing uncertainty.