In W27 in the onion landscape, high prices of onions in Europe are attributed to the heatwave and drought experienced during the previous summer's growing season. However, the recent implementation of tariff cuts under the A-UKFTA (Australia-United Kingdom Free Trade Agreement) has allowed Australian onions to fill the supply gap caused by the European shortfall. The tariff reduction, which took effect on May 31, 2023, eliminated the 8% tariffs on Australian onions, making them more competitive in the UK and European markets. Furthermore, the supply of early onions in Ukraine currently exceeds the demand, leading to a seasonal increase in supply and subsequent price reductions. Prices for early onions in Ukraine have decreased by 15% compared to the previous week, ranging from USD 0.76 to 0.98/kg (UAH 28-36/kg). This price decline can be attributed to weather conditions in Ukraine normalizing, allowing farmers from the southern regions to begin their onion harvesting campaigns, resulting in a significant increase in supply. Secondly, the demand for onions in the Ukrainian market remains relatively low. Although the current prices of onions in Ukraine are still 77% higher than those in late June 2022, there is a forecast of further price decreases due to the lack of trading activity and the continuous growth in the supply of new domestic crops.
In Egypt, onion prices have experienced a significant surge in the markets, reaching USD 32.78/kg (GBP 25/kg) in Southern Upper Egypt and at least USD 26.22/kg (GBP 20/kg) in Cairo and Giza. This remarkable price increase can be attributed to the surge in demand for onions due to the resumption of tourism activities and the decrease in crop areas during the past period. The head of the General Syndicate of Farmers of Egypt reported prices have increased by 12 times compared to 2022, with farmers selling onions for an average of USD 13.110 thousand per ton (GBP 10 thousand per ton). On the other hand, Onion prices have experienced a significant increase in wholesale and retail markets in Bangladesh within a week due to the higher costs of imported onion varieties. Local onions increased by USD 0.092/kg (BDT 10/kg), while the imported varieties rose by USD 0.046/kg (BDT 5/kg). Local onions stood at USD 0.64-0.74/kg (BDT 70-80/kg), compared to USD 0.60-0.64/kg (BDT 65-70/kg) a week ago and USD 0.83-0.92/kg (BDT 90-100/kg) a month ago. Lastly, Nigeria's National Bureau of Statistics (NBS) reported that the price of onions increased by 17.12% YoY, from USD 0.011/kg (NGN 387.53/kg) in May 2022 to USD 0.013/kg (NGN 453.86/kg) in May 2023.
