W52 Onion Update: Increased Onion Production in the EU, Record Harvests in Uzbekistan and Central Asia, and Potential Export Restrictions in Pakistan

Onion Production Increases in the EU and Pressure on Prices in Ukraine Due to Loss of Southern Plantations

Onion production in the 2022/23 season increased in almost all European Union (EU) countries except for Poland, with record harvests in Uzbekistan and Central Asia. The season will start with Iran in February, followed by Egypt, Turkey, and Central Asia. However, negative factors, such as the loss of southern plantations in the EU and high prices from the EU, have put pressure on onion prices in Ukraine. Central Asian onions were not exported to Ukraine due to floods and frosts, increasing prices on the Ukrainian market.

Steady Market for Yellow Onions in the Netherlands While Red Onions Tight Supply Due to Reduced Cultivation Areas

The Northern and Central Netherlands Agricultural Exchange (LNCN) reports a steady market for yellow onions in the Netherlands, indicating a balance between supply and demand. Red onions are steady, indicating a tight supply due to fewer cultivation areas in 2023. On December 28, 2023, yellow onions had an indicative price of USD 39.43 to 49.29/100 kilogram (EUR 36 to 45/100 kg) for 30 to 60% for large onions. Red onions have become slightly more expensive, with the latest quotation at LNCN for coarse size grading being USD 65.72 to 76.67/100kg (EUR 60 to 70/100kg). Exports of Dutch onions are continuing steadily but at a lower level than in 2022. As of W47, the Netherlands has exported 520 thousand tons of onions, with Senegal emerging as the largest importer. However, destinations in Asia and Central America reportedly purchase fewer Dutch onions than in 2022.

Pakistan Considers Onion Export Restrictions Due to Local Price Increase

One of the top 5 to 7 global onion exporters, Pakistan is reportedly considering restrictions on onion exports. Although not formally confirmed, the possibility of such regulations is high. The primary reason behind this potential move is the increase in domestic onion prices, an essential staple in the consumer basket. Despite onion prices being lower than the previous year, the devaluation of the local currency against the dollar impacts prices more significantly than supply and demand. Significant markets for Pakistani onions include Malaysia, Sri Lanka, and the United Arab Emirates (UAE). If restrictions are imposed, it could lead to a notable increase in onion prices in the Middle East, potentially increasing onion imports from the EU and making exports to the UAE, even from other countries like Uzbekistan, more profitable.

India Experiences 10 to 34% Decline in Retail Onion Prices, Maharashtra Faces 60% Drop in Wholesale Prices

In India, the Ministry of Consumer Affairs reports a 10% to 34% decline in retail onion prices from December 5 to December 26, 2023, with average prices dropping from USD 0.72/kg (INR 60/kg) to USD 0.48/kg (INR 40/kg). On December 25, 2023, onion prices in wholesale markets in Maharashtra hit a low of USD 0.024 to 0.060/kg (INR 2 to 5/kg), a 60% drop since December 8, when India banned onion exports. The growing arrival of onions in Gujarat, Rajasthan, and Madhya Pradesh has reduced demand for Maharashtra's onions, further reducing prices.

Egypt Witnesses 50% Decrease in White Onion Prices During W50 to W52

White onion prices in Egypt have decreased by 50% in consumer and wholesale markets over the past two weeks, with prices standing at USD 0.58 to 0.65/kg (EGP 18 to 20/kg). The new "white" onions are produced in North Upper Egypt's governorates of Faiyum and Beni Suef, contributing to the decline in wholesale and retail markets. The deputy head of the Vegetables Division announced that onion production in the Delta governorates will begin in April, allowing storage up to a year. The Official Gazette published Resolution No. 349 of 2023, banning onion exports for three months starting October 1, 2023. The decision to postpone was made to allow the completion of previously agreed-upon deals with exporters, effective until the beginning of Oct-23.