In W39 in the onion landscape, in India, red onion prices have surged by 50% month-on-month (MoM), leading the government to impose a 40% export duty to stabilize the market. On the other hand, Peruvian red onions reached a historic high of USD 1.78 per kilogram (kg) due to international demand and supply shortages. South African yellow onion prices, which peaked in May, have gradually declined by 54% in the monthly average. Indonesian onion prices have decreased due to increased imports despite remaining lower than the previous year's severe shortage.
The Indian government is considering rolling back the 40% export duty on Bangalore rose onions and Krishnapuram rose onions grown in Karnataka and Andhra Pradesh, respectively, to address the significant drop in onion exports caused by the imposed duty in Aug-23. Nashik traders have decided to continue their onion strike initiated on September 20, but this is not forecasted to have a significant impact on onion prices in the country. The Agri Commodities Exporters' Association, representing rose onion exporters, has requested permission to export 10 thousand metric tons (mt) of these onions without export duty from Oct-23 to Dec-23.
Furthermore, in response to the ongoing onion strike, traders in Nashik, India, are contemplating breaking away from the government-controlled Agriculture Produce Market Committee (APMC). During W38, some traders initiated "private markets" where they purchased onions directly from growers and sold them in retail markets. This development could potentially lead to reduced state control over onion trading as growers seek alternative avenues to sell their produce.
The Egyptian government recently imposed a three-month ban on onion exports to address rising prices in the domestic market. However, this ban has been temporarily suspended until October 1, allowing exporters to fulfill their commitments. The sudden introduction of the ban was due to a significant surge in onion prices, driven by reduced cultivation, global scarcity, and increased demand. Export prices had risen from USD 400 per metric ton (mt) to USD 600/mt. The onion cultivation area in Egypt is forecasted to increase in the next season to balance local demand and exports. Coordination among growers, exporters, and the government is seen as essential to avoid resorting to export bans as a last resort.
Lastly, onion prices in Egypt have surged to USD 1.14/kg (EGP 35/kg) in Sep-23, compared to USD 0.81/kg (EGP 25/kg) in Aug-23, and approximately USD 0.75/kg (EGP 23/kg) in the same period in 2022. Some consumers attribute the price disparities to traders, emphasizing the need for further intervention to stabilize prices.