W4 Onion Update: Poland's Onion Prices Rise in 2024, Global Onion Price Differences and India Considers Lifting Onion Export Ban Amid Price Drop

Poland Grapples with Soaring Wholesale Onion Prices in 2024 Amidst Contrasting Regional Trends

Since the start of 2024, Poland has seen an increase in wholesale onion prices, reaching USD 0.50 per kilogram (kg), twice the previous level, surpassing the levels in 2022 by 4%. The 2022/23 season saw a record increase in onion prices, starting in Feb-23 and continuing until Jun-23. However, the situation in the 2023/24 season in Ukraine and Central Asian countries is different. Ukraine's onion prices are one-third lower than Poland's, while Central Asian prices are four to five times lower. Kazakhstan and Uzbekistan onions are already supplied to European Union (EU) markets, including Poland. Turkey's onions in W4 cost half as much as Poland's. While not expecting price records, the upward trend may continue until mass supplies of new crop onions from southern Europe and North Africa begin.

India Contemplates Lifting Ban Amidst Plummeting Prices and Market Concerns

The Indian government is considering lifting the ban on onion exports due to a sharp drop in onion prices. The ban, in effect until March 31, 2024, has caused dissatisfaction among farmers and traders due to the arrival of a new crop of onions. The world's largest onion exporter, India exports 1.5 to 2.2 million tons of fresh onions annually. However, the ban has led to a significant increase in prices in the markets of large onion importers from India, including Asian countries like Bangladesh, Malaysia, Sri Lanka, Nepal, and Indonesia, as well as Middle Eastern countries like the United Arab Emirates (UAE), Qatar, Oman, and Kuwait. Experts believe the situation is threatening and could lead to a collapse in onion prices.

Tajikistan's Onion Market Shift Sparks Potential Exports to Eastern European Nations

Onion prices in Tajikistan have plummeted to USD 0.9/kg, marking a 40% decline since the end of onion harvesting. Despite the initial concerns, experts caution against relying too heavily on current predictions, suggesting that a significant drop in onion prices remains a plausible scenario. Surprisingly, the situation appears more favorable than anticipated, raising the possibility of Tajikistan initiating onion exports to Poland, Romania, Bulgaria, Lithuania, Latvia, Estonia, Slovakia, and the Czech Republic.

Ukraine's Onion Market Amidst European Price Surge and Global Challenges

The Ukrainian onion market is experiencing stable prices, while prices are rising in neighboring EU countries, particularly Poland. Ukraine's wholesale prices are two times lower than last year and close to the long-term average, reaching USD 0.3/kg. Due to declining stocks and rising prices, Ukraine began shipping onions to Romania, which previously imported onions from Moldova. The export of onions from Ukraine to EU countries is becoming profitable, confirming Ukraine's ability to restore onion production in just one year. However, increasing onion supplies from Ukraine to EU countries could support domestic prices, especially for high-quality products. The global onion market is also facing challenges, with countries like Uzbekistan, Kazakhstan, Tajikistan, India, Turkey, and the EU facing shortages. The onion market will likely remain dynamic until summer 2024, with the first batches of onions from new crop regions in Central Asia and North Africa expected to arrive in just a month and a half.

PH Government Permits Trigger Drastic Onion Price Collapse Ahead of Feb-24 Harvest

During the previous season, onion prices skyrocketed in the Philippines, surpassing meat prices and rendering vegetables unaffordable for a significant portion of the population. This resulted in peculiar scenarios such as furniture stores accepting onions as payment, onions being included in wedding bouquets, and even airline pilots facing arrests for attempting to bring onions into the country. Despite these unusual circumstances, the country's authorities have persisted in market intervention, causing a decline in onion prices and leading to financial losses for farmers.

In Luzon, the primary region for onion production, the wholesale price of onions plummeted to USD 0.36/kg, marking a drastic decrease of approximately 28 to 30 times compared to 2023. The oversupply issue arose from the government issuing more permits than necessary for domestic consumption, resulting in a market price collapse. As the Philippines anticipates the onset of the new onion harvest in Feb-24, the negative repercussions of government interference in the market are evident, impacting consumers, farmers, and the overall state of the economy.

Fluctuating Onion Prices in Myanmar Amidst Transportation Issues

The onion market in Myanmar is facing instability, marked by a week-long price decline. In rural planting regions, prices hover around USD 0.95 per ton (MYR 2,000/ton), whereas in urban areas, they stand at approximately USD 1.29/ton (MYR 2,700/ton). The price drop is attributed to a shortage in transportation, leading to an oversupply of onions. The present market rates vary, ranging from USD 1.29 per piece (MYR 2,700) for small onions to USD 1.57 per piece (MYR 3,300) for larger ones.