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Tridge Analysis

W4: Weekly Onion Update

Updated Feb 1, 2023
Tridge's global market analysts and country representatives look into what happened in W4 in the global onion landscape. In summary, in six districts of the Tamil Nadu state of India, onion crops were destroyed due to rains. In December 2022, the Ministry of Agriculture and Forestry in Turkey decided to indefinitely halt the exports of fresh or chilled potatoes and onions. The Ministry of Agriculture of the Republic of Kazakhstan notified that the interdepartmental commission on foreign trade policy and economic organizations decided to ban the export of onions for three months. The export counter for Dutch onions stands at 764k tons from the beginning of July until December 2022, more than 50K tonnes less than the previous year during the first half of the season. In the Philippines, the first shipment of imported onions arrived as part of the government's temporary short-term solution to curb rising onion prices. The Philippine Department of Agriculture has postponed the extension of the proposed retail price of USD 4.59/kg for onions due to the expected lower onion prices after the harvest season. In Spain, the 2022/23 campaign is concluding, and the lack of onion supply is around 30% less than in the 2021/22 season. In Tajikistan, the cost of onions has tripled compared to 2022. On the other hand, the Ukraine harvest of onions dropped and the prices increased. Lastly, on January 20 in Uzbekistan, the Uzbek Agriculture Minister announced a four-month export ban on onions after prices doubled in three weeks.

India

Heavy Rains Destroy Silverskin Onion Crops in Tamil Nadu, India (Jan 27)

In six districts of the Tamil Nadu state, around 80% of the silver onion production was destroyed due to unexpected rainfalls since November. As a result, prices are increasing in several districts of the state.

Turkey

Turkey Halts Potato and Onion Exports to Ensure Food Security (Jan 27)

In December 2022, the Ministry of Agriculture and Forestry in Turkey decided to indefinitely halt the exports of fresh or chilled potatoes (0701.90) and onions (0703.10.19.00.11). The primary reason for this decision is to ensure food security and price stability for potatoes and onions within the country. Phytosanitary/health certificates will not be issued for export applications for potatoes or onions.

Kazakhstan

Kazakhstan Signed an Agreement With Tajikistan for the Supply of 6K Tons of Onions (Jan 23)

Tajikistan will supply 6K tons of early harvest onions to Kazakhstan. The Kazakh business delegation discussed the supply of agricultural products to the Republic of Kazakhstan with the acting chairman of the Khatlon region.

Kazakhstan Banned the Export of Onions (Jan 26)

The Ministry of Agriculture of the Republic of Kazakhstan notified that the interdepartmental commission on foreign trade policy and economic organizations decided to ban the export of onions for three months. This decision is to prevent the mass export of onions from Kazakhstan and to stabilize the prices. 

Morocco

A Staple Vegetable Hit by Rising Prices in Morocco (Jan 25)

During W4, the price of onions was USD 2.18-2.72/kg (AED 8-10/kg), for the end consumer. Moroccan consumers expressed concern regarding the rising prices, affecting staple foods and weakening their purchasing power.

Netherlands

Export of Dutch Onions 50K Tons Lower (Jan 24)

The export counter for Dutch onions stands at 764k tons from the beginning of July until December 2022. More than 50K tonnes less than the previous year during the first half of the marketing season. The lower export volume is partly due to the smaller harvest in 2022. In October, Statistics Netherlands set the provisional harvest estimate for onions seeds in the Netherlands at 1.2M tonnes, a decrease of 250K tons from the final harvest figures for the 2021 harvest year. 

Philippines

First Shipment of 1.2K Tons of Imported Onions Arrives in the Philippines (Jan 26)

The first shipment of imported onions arrived in the Philippines as part of the government's temporary short-term solution to curb rising onion prices. A total of 400 tons of yellow onions and 800 tons of red onions must be cleared by the Bureau of Plant Industry (BPI) before being released on the local market. 

Universities Look To Vertical Farms ‘to Solve Onion Shortage’ (Jan 27)

The Department of Science and Technology of the Philippines (DOST) and the universities Nueva Ecija University of Science and Technology (NEUST) and Tarlac Agricultural University (TAU) have started a research collaboration to increase the country's onion supply with innovations and technology-based solutions. 

Philippine Ministry of Agriculture Postpones Extension of the Maximum Price of USD 4.56 for Onions (Jan 27)

The Philippine Department of Agriculture has postponed the extension of the proposed retail price of USD 4.59/kg for onions due to the expected lower onion prices after the harvest season. The ministry reported onion prices could decrease to USD 1.84-2.76/kg with the import of more than 5K tons of onions.

Spain

The 2022/23 Spanish Onion Season Is Ending With Prices Higher Than 2021/22 (Jan 25)

The 2022/23 Spanish onion campaign is concluding and the lack of supply compared to the 2021/22 season is notable, which is around 30% due to various factors, including adverse weather conditions and the progressive reduction of the planted area due to the dismal 2019/20 campaign. The decreased supply has caused prices in W3 to be around USD 0.65-0.76/kg EXW compared to USD 0.44/kg EXW at the same time during the 2021/22 season. In addition, interest in importing onions from other origins is beginning. Onions from India may represent an opportunity for Spain until the start of the new campaign in April.

Tajikistan

Onion Prices Tripled in Tajikistan (Jan 25)

In Tajikistan, the cost of onions has tripled compared to 2022. The average retail price for onions in Dushanbe was USD 0.24/kg (TJS 2.5/kg) compared to the 2023 price of USD 0.73/kg (TJS 7.5/kg). Experts reported prices could decrease with the upcoming new harvest in three months. 

Ukraine

The Onion Harvest in Ukraine Is a Third Smaller (Jan 25)

Ukraine harvested 732K of onions, a decrease of 29% compared to the 2021 harvest. The Netherlands Onion Association forecasted that imports could reach 120K tons. Due to the Russian occupation of the Southern Regions of Ukraine, the area sown under onions has decreased from 54K to 46K hectares.

Onion Prices in Ukraine Are Rising Again (Jan 25)

The selling price of onions in Ukraine has increased again. Market operators mentioned a possible shortage of quality products at the end of the season and emphasized that the yearly production has significantly decreased. And due to unfavorable weather conditions, the percentage of substandard onions, which are not subject to long-term storage, has increased.

Uzbekistan

Export Ban in Uzbekistan and Kazakhstan for Onions and Root Vegetables (Jan 27)

The harshest winter since 2008 led to shortages of vegetables. Prices are increasing north in a region still suffering from Covid-induced food inflation. On January 20, the Uzbek Agriculture Minister announced a four-month export ban on onions after prices doubled in three weeks.

Onion Price in Uzbekistan Has Surpassed the Previous Record by a Factor of 4 (Jan 27)

The average wholesale prices for onions in Uzbekistan have updated a new record. On January 20, 2023, onion prices were four times the previous record price for onions during this period, set last year.

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