In W42 in the onion landscape, the average wholesale price of onions at the Lasalgaon Agriculture Produce Market Committee of India (APMC) witnessed a 19% week-on-week (WoW) increase, rising from USD 30.54 to USD 36.14 per quintal (INR 2,535 to USD 3,000/quintal) on October 16, 2023. This price surge is due to the decline in the arrivals of summer onions, which are now being sourced from farmer storage. The late arrival of fresh kharif onions due to erratic rains has further exacerbated the situation, with daily arrivals in Lasalgaon dropping from 20 thousand quintals to 9 thousand quintals daily. The onion supply is forecasted to normalize by November 15, with the arrival of fresh kharif produce. Maharashtra's delayed and inconsistent monsoon has led to a drop in kharif crop production, affecting various agricultural sectors.
Hungary continues to face onion import challenges despite a 3% year-on-year (YoY) increase in domestic onion cultivation area. Over the past five years, Hungary's domestic red onion production has remained relatively constant, ranging from 39 thousand to 54 thousand tons annually, while demand requires an additional 50 thousand to 60 thousand tons each year. The Hungarian demand for onions remains high during winter until overwintering onions are ready.
In 2023, Hungary received fewer onion imports from Slovakia, Austria, and Germany, while the Netherlands, the largest exporter in the European Union (EU), supplied Hungary with 34% more onions than in 2022. Additionally, Egyptian and Slovenian onions are now available in the Hungarian market. Despite high prices, demand for red onions remains strong due to their essential role in households, with few easy substitutes.
Average prices for red onions in Budapest and rural consumer markets ranged from USD 1.26 to 2.09 per kilogram (HUF 450 to HUF 750/kg) from late Sep-23 to early Oct-23.
While Europe's overall onion production showed signs of improvement compared to the drought-affected year of 2022, specific regions, including Andalusia, Germany, Italy, and Poland, witnessed declines. In contrast, the Netherlands, the largest onion producer in Europe, saw a 39% YoY increase in production despite facing various challenges.
Lastly, a research collaboration between the University of Georgia and Texas A&M University, known as "Onion IQ (Improved Quality)," aims to enhance organic onion production practices in the southern United States (US) to meet the growing demand in the US organic industry. The project is funded by a USD 3.2 million allocation from the US Department of Agriculture (USDA) and will focus on addressing challenges in organic onion production, particularly bacterial rots caused by soil-borne bacteria.