W17 Onion Update: Indian Government Allows Onion Export Amidst Lower Crop Estimates and Rising Demand, Egyptian Onion Exports Resume with Focus on Red Varieties

Published 2024년 5월 6일

In W17 in the onion landscape, the Indian government has authorized the export of 99.1 thousand mt of onions to six countries, including Bangladesh, UAE, Sri Lanka, and three others, due to lower crop estimates and increased international demand. Moreover, the NCEL will procure onions from domestic producers online. Egyptian onion exports have resumed after a six-month ban, with high demand for red varieties. However, demand for yellow onions is slower due to lower-priced Dutch dry onions. Onion prices at the LNCN Agricultural Fair in the Netherlands have also decreased.

Indian Government Permits Onion Export to Six Countries Amid Local Supply Challenges

The Indian government authorized the export of 99.1 thousand metric tons (mt) of onions to Bangladesh, the United Arab Emirates (UAE), Bhutan, Bahrain, Mauritius, and Sri Lanka. This decision comes as a response to lower crop estimates for both the Kharif and Rabi seasons in the 2023/24 season, coupled with increased international demand. The National Cooperative Exports Limited (NCEL) will procure onions from domestic producers through an online platform at competitive prices. Additionally, the government has allowed the export of 2 thousand mt of white onions, cultivated specifically for markets in the Middle East and some European countries. Furthermore, the government has set a procurement target of 500 thousand tons of onions under the Price Stabilization Fund for the 2024 Rabi season.

Hili's Local Onion Prices Increase on Import Reduction

On April 28, 2024, the price of the local variety of onion in Hili, Dinajpur district in India, rose by USD 0.091 per kilogram (BDT 10/kg) in just two days due to decreased imports compared to demand. Wholesalers and retailers note that this price increase in the wholesale market has led to potential losses for traders if prices fluctuate. They anticipate that once onion imports from India resume, the price of the local variety will likely decrease. The 'King' variety of local onion, which was previously sold at USD 0.41/kg to 0.46/kg (BDT 45/kg to 50/kg), has now increased in price to USD 0.50/kg to 0.55/kg (BDT 55/kg to 60/kg), showing a USD 0.091/kg (BDT 10/kg) increase. Retail onion traders at Hili Bazar argue that wholesalers have quickly raised prices, citing reduced imports from India. They speculate that if Indian onion imports resume, the price of the local variety will decrease further. However, if Indian imports do not resume, the price of the local variety is expected to rise in the coming days.

Resumed Egyptian Onion Exports See High Demand for Red Varieties

Egyptian onion exports have resumed after a six-month ban, with 2024’s production reaching nearly 1.8 million tons. Production conditions are favorable, with the 60 to 80 variety being the most abundant and in demand. The campaign's first month has seen positive commercial progress, particularly with red onion varieties in high demand from Western European countries like the Netherlands, Germany, Italy, France, and the United Kingdom (UK). However, demand for yellow onions is slower due to the availability of lower-priced Dutch dry onions. Despite strong demand, prices are lower than last season, reflecting market conditions. Competition among producers is mainly at the national level, emphasizing quality.

Declining Onion Prices at LNCN Agricultural Fair in the Netherlands

The North and Central Netherlands Agricultural Fair (LNCN) in Emmeloord has noted a significant decrease in onion prices. Large yellow onion prices stood at USD 16.06/100 kg to 19.27/100 kg (EUR 15/100 kg to 18/100 kg), marking a EUR 24 drop from the beginning of the year. This price decline is a result of an oversupply and decreased demand. In contrast, large red onions continue to be sold at higher prices, with the last quotation of the season at USD 69.59/100kg (EUR 65/100kg). The increase in the supply of yellow onions was anticipated following a slight adjustment in the final onion harvest of 2023 by Statistics Netherlands in Jan-24. Furthermore, the rise in yellow onion prices is also attributed to lower-than-expected exports, especially to Brazil, and increased demand from Israel.