1. Weekly News

Bangladesh

Onion Prices Decline Following Steady Imports, Easing Market Pressure

In Bangladesh's retail markets, onion prices have dropped by USD 0.084 to 0.17 per kilogram (BDT 10 to 20/kg). Local onions stood at USD 1 to 1.09/kg (BDT 120 to 130/kg), and imported varieties at USD 0.84 to 0.92/kg (BDT 100 to 110/kg). Traders expect prices to remain stable through the season as imports continue. The improved onion supply contrasts with rising potato prices, highlighting market disparities and the ongoing need for systemic reforms.

Belgium

Belgium's Onion Cultivation Expands Despite Quality Challenges

Belgium's onion cultivation area increased by over 25% in 2024 to approximately 6,500 hectares (ha), with Wallonia expanding to 2,000 ha and Flanders growing by 19% to 4,411 ha. While demand for fresh-market onions rose, industrial cultivation surged, with late varieties in Flanders increasing by 23% to 2,575 ha, surpassing the 2021 peak. However, due to heavy rains during ripening and delayed harvesting, quality issues have emerged. Storage conditions are less favorable, leading to increased bacterial and head rot. Growers are advised to monitor stored onions closely, with some opting for earlier sales to mitigate risks.

India

Government Boosts Onion Supply to Control Prices in Delhi and Other Cities

The Indian government dispatched its fifth bulk shipment of 720 metric tons (mt) of buffer onions to Delhi on November 21, part of a broader initiative to stabilize prices. Since Oct-24, 4,010 mt have been transported from Maharashtra to Delhi via rail, retailing at USD 0.41 (INR 35/kg).

The latest 840-mt shipment arrived on November 17. Similar efforts are underway in other cities, with 840 mt dispatched to Chennai and Guwahati and further shipments planned for Lucknow and Guwahati.

To address supply constraints from festival season disruptions, the government has scaled up transportation and released stocks from Sonipat cold storage for neighboring states. Of the 470,000 mt buffer stock for 2024, 150,000 mt have been distributed so far.

Netherlands

Dutch Onion Exports Surge in Late 2024 Amid Stable Prices and Strong Demand

From Oct-24 to Nov-24, Dutch onion exports reached 39,292 mt, 13,000 mt higher than last year, aided by stable prices. Weekly exports since Sep-24 have ranged between 30,000 and 40,000 mt, below the peak levels of 2020 and 2021 but showing gradual price increases.

Key markets in W44 included Senegal with 10,000 mt, Ivory Coast with 5,200 mt, and Mali with 3,273 mt. Senegal remains the largest buyer in 2024, with 85,000 mt shipped by W44, slightly trailing last year’s figures but closing the gap. Ivory Coast has significantly increased purchases, with total sales exceeding 78,000 mt, driven by improved affordability. Prices remain favorable. Yellow seed onions are quoted at USD 14.77 to 17.94/100 kg (EUR 14 to 17/100 kg), while red onions stood higher at USD 23.22 to 31.66/kg (EUR 22 to 30/100 kg), reflecting strong demand, particularly for coarser grades.

South Korea

South Korea Develops MRI-Based Technology to Enhance Onion Storage Quality

Led by the Rural Development Administration (RDA) and Jeonbuk National University, South Korean researchers have patented a Magnetic Resonance Imaging (MRI) based technology to predict the quality of stored onions. This technology addresses the high spoilage rate of 25 to 40%.

The system uses MRI data, shape metrics, and Red, Green, and Blue (RGB) color analysis to detect early germination, a precursor to decay. A sprouting index predicts degradation, enabling a better selection of onions for storage. This innovative approach surpasses traditional visual inspection, offering greater precision in assessing storage potential, shape, and flavor characteristics.

Despite its potential, widespread implementation requires commercializing imaging equipment and specialist training. The RDA plans further technical collaboration and field testing to optimize onion storage and reduce spoilage.

Uzbekistan

Uzbekistan's Onion Exports Rise by 19.5% in 2024

From Jan-24 to Sep-24, Uzbekistan exported 308,800 mt of onions valued at USD 60.1 million, marking a 19.5% year-on-year (YoY) increase compared to 258,400 mt in 2023. Sep-24 exports rose to 5,600 mt, up from 4,500 mt in Aug-24. Onions contributed to Uzbekistan's broader agricultural exports, with 1.4 million metric tons (mmt) of fruits and vegetables exported in the same period, a 7.6% YoY increase, representing 5.3% of the country's total exports.

2. Weekly Pricing

Weekly Onion Pricing Important Exporters (USD/kg)

Yearly Change in Onion Pricing Important Exporters (W47 2023 to W47 2024)

India

India's onion prices fell to USD 0.46/kg in W47, reflecting an 11.54% week-on-week (WoW) decrease, mainly due to government interventions. The release of 4,010 mt of buffer onions since Oct-24 and expanded shipments to key cities have boosted supply, alleviating price pressures. Continuing distribution from the 470,000 mt buffer stock and strategic allocation to high-demand regions may stabilize prices. However, future trends will depend on sustained government efforts, domestic production levels, and demand fluctuations during peak seasons. Effective stock management and market monitoring will be crucial to preventing price volatility.

Netherlands

In the Netherlands, onion prices slightly increased to USD 0.15/kg in W47, reflecting a 6.25% decrease from the previous week but maintaining month-on-month (MoM) stability. Between Oct-24 and Nov-24, Dutch onion exports reached 39,292 mt, a rise of 13,000 mt compared to the previous year. While export volumes are below the peak in 2020 and 2021, they have been consistently within the 30,000 to 40,000 tons range, supported by stable pricing. Key markets such as Senegal, Ivory Coast, and Mali have been significant buyers, with Senegal continuing to be the largest importer. Despite a robust supply this year, including imports from neighboring countries, challenges remain with low stocks and lower-quality onions, which could affect pricing. The 2024 crop is projected to reach 1.3 mmt, similar to the 2021/22 season, but growers are advised to carefully manage their exports to avoid a potential backlog by year-end.

Mexico

In W47, Mexico's onion prices decreased to USD 1.24/kg, marking a 10.79% WoW decline. However, prices increased 19.23% MoM from USD 1.04/kg. The National Institute of Statistics and Geography (INEGI) reported a rise in the National Consumer Price Index (INPC), with inflation at 4.56% in the first half of Nov-24. Non-core price index, which includes fruits and vegetables, rose by 1.44% biweekly and 7.64% annually. Onions increased 14.88% during this period, which reflects broader inflationary pressures in the country, particularly affecting food prices. Inflation and supply dynamics influence the rise in onion prices, suggesting continued volatility in the coming weeks.

Egypt

In W47, Egypt's onion prices decreased to USD 0.31/kg, marking an 8.82% WoW drop and a significant 45.61% YoY decline from USD 0.57/kg. This price reduction is due to seasonal shifts in supply and demand and an increase in domestic consumption in preparation for a short-term supply gap. Despite a projected rise of 1 mmt in Egypt's onion production for 2024, fluctuations in the timing of harvests and disruptions in supply chains have led to a temporary tightening of available stock, contributing to the current price decrease. These dynamics suggest that while prices are low for now, short-term volatility could persist due to supply chain factors.

Spain

In W47, Spain's onion prices decreased to USD 0.24/kg, reflecting a 4% WoW and a 41.46% YoY drop. The Spanish onion sector is facing an oversupply, as increased acreage and cost-effective prices in previous years have led to more production, which is currently outpacing demand. Despite the lower prices, some sectors, like Agorreta, are experiencing high demand and cannot meet all orders. The oversupply, especially from open-ground onions, has led to low prices for freely-grown onions, around USD 0.10/kg. This situation is exacerbated by a need for more demand from the industrial sector, including frozen food producers, who have already secured their supply or have sourced from China. In addition, the industry's inability to absorb the oversupply has contributed to these lower prices. On the other hand, high-quality onions from areas like Navarre are seeing strong demand in European Union (EU) and non-EU markets. Modernization efforts in sorting and packaging are helping to meet this demand, but the overall market is still adjusting to the supply imbalance. This suggests that while prices remain low, certain segments of the market, particularly high-quality products, are more resilient.

3. Actionable Recommendations

Enhance Onion Storage and Quality Management

Given the storage challenges in Belgium and the growing issue of onion spoilage in various regions, stakeholders should invest in advanced storage technologies to preserve onion quality. The introduction of MRI-based technology developed by South Korean researchers could be instrumental in predicting and preventing spoilage, such as early germination or decay. This technology, combined with improved storage conditions and monitoring systems, would help reduce losses during peak harvest periods, ensuring a more stable supply of high-quality onions for domestic and export markets.

Strengthen Buffer Stock Management

In countries like India, where government interventions have successfully stabilized prices through buffer stocks, enhancing the management and distribution of such stocks is crucial. Expanding buffer stock reserves and ensuring strategic distribution across high-demand regions, particularly during peak consumption periods, will help maintain price stability. This approach can be particularly effective in mitigating the impact of seasonal fluctuations and supply chain disruptions, thus ensuring a more consistent market environment for producers and consumers.

Expand Export Markets and Diversify Trade Relationships

With global onion supply fluctuating, onion-producing countries such as Uzbekistan and the Netherlands should focus on diversifying their export markets to reduce reliance on traditional buyers. By targeting emerging markets in Africa and Southeast Asia, where demand for onions is increasing, producers can offset risks associated with market volatility and secure more stable revenue streams. Strengthening trade relationships, improving logistics infrastructure, and exploring new consumer bases will help ensure a steady export demand and support long-term market sustainability.

Sources: Tridge, Nieuwe Oogst, TBS News, Economic Times