In W34 in the onion landscape, the wholesale price of red onions in India's Uttar Pradesh market has surged to USD 0.29 per kilogram (kg), showing an 18% increase week-on-week (WoW) and a 50% increase month-on-month (MoM). The rise is attributed to an oversupply of lower-quality onions due to prolonged summer heat. An unusually dry August, partly caused by the El Niño weather pattern, has further exacerbated the situation.
On August 22, the Central government of India announced the sale of onions to consumers at a fixed rate of USD 0.30/kg (INR 25/kg) by the Minister of Consumer Affairs and Food. This initiative comes as a response to the declining onion prices due to a 40% export duty imposed on onions until the end of 2023. The government has also begun procuring 2 thousand metric tons (mt) of onions from farmers in Maharashtra. This decision, the first-ever imposition of export duty on onions, aims to stabilize domestic onion prices ahead of the festive season. The move follows escalating retail onion prices in Delhi, which reached nearly USD 0.48/kg (INR 40/kg). The central government plans to maintain a buffer stock of 3 thousand mt of onions for the 2023/24 season, aimed to counter supply shortages and price fluctuations. In addition, auctions for onions at Maharashtra's Nashik district Agricultural Produce Market Committees (APMCs), closed for three days due to protests against a 40% export duty, will restart after traders and farmers decide to withdraw the agitation.
Furthermore, India has promptly imposed a 40% export duty on onions to counter escalating domestic prices and ensure a stable supply for its citizens until December 31. This move aims to stabilize local onion costs amidst upcoming state elections, but it also affects Asian buyers due to limited onion supplies from other exporting countries. The duty increases Indian onion prices relative to competitors like Pakistan, China, and Egypt, potentially reducing exports and supporting local price stability. However, this decision halted onion auctions in Maharashtra's Nashik district, raising concerns about its impact on local growers and urging government intervention. The broader context of export restrictions on various commodities has already posed financial losses and inventory challenges for businesses.
On August 25, 2023, Delhi's onion market received 48 truckloads of onions, including old and recent stock. The market had previously seen 100 to 125 truck arrivals in the recent weeks. Prices and availability varied across regions: Pune received three trucks with prices ranging from USD 9.69/kg to USD 10.90/40kg (INR 800/40kg to INR 900/40kg), depending on quality. Nashik had nine trucks with prices ranging from USD 9.69/40kg to USD 11.51/40kg (INR 800 to INR 950/kg), influenced by quality. Madhya Pradesh (MP) had nine truck arrivals with prices from USD 9.08/40kg to USD 10.90/40kg (INR 750/kg to INR 900/kg). Rajasthan had 15 truck arrivals with a price of USD 10.90/40kg.
Government entities, including NAFED and NCCF, participated in the market. NAFED recorded eight trucks with prices around USD /kg (INR /40kg), and NCCF had three trucks with prices ranging from USD 8.48/40kg to USD 10.29/40kg (INR 700/40kg to INR 850/40kg) through a tender process. Nashik and Mumbai markets reflected onion prices from USD 0.19/kg to USD 0.28/kg (INR 16/kg to INR 23/kg), influenced by quality factors.
The local onion market in Bangladesh is experiencing price surges following India's imposition of a significant export duty on onions. Wholesale prices have escalated by USD 0.64 to 1.10/5kg (BDT 70 to 120/5kg) in a day. This market instability is forecasted to have a widespread impact on the retail sector, as some retailers have already raised prices by USD 0.046/kg (BDT 5/kg).
Lastly, following inspections of areas affected by flood and rain in Chile's south-central region on August 21, the Agriculture Minister assessed crop damage and indicated that food prices might see a limited increase. The most impacted crops include onions, beans, carrots, melons, watermelons, cherries, and raspberries. O'Higgins University, Maule, and parts of Nuflé experienced severe crop damage. However, regions such as Valparaíso, Santiago Metropolitan Region, and Biobío Region situated in elevated hill areas have faced relatively minor harm to agricultural activities.