According to analysts, onions continue to be a dynamic commodity in the fruit and vegetable market. The recent arrival of new crop onions from several countries has eased the market hype, but there have been notable trends in the past week.
To assess the market, countries were categorized into two groups: those where new crop onions dominate and those where the local harvest has not yet begun or new onions are not prevalent.
In the first category, Tajikistan, Uzbekistan, and Georgia, prices are comparatively lower than in the second category.
Tajikistan currently offers the most affordable onions, with wholesale prices decreasing by 19% over the week to reach $0.21 per kg. The lower prices are attributed to the lack of transparency in export policies, as an official announcement of an onion export ban has not been made. Nevertheless, onions in Tajikistan are cheaper compared to the same period last year, with wholesale prices five times lower than in Ukraine.
In Uzbekistan, onion prices unexpectedly increased after two weeks of stability. High-quality onions are now being sold at a record price of $0.39 per kg, which is 44% higher than last year and nearly double the usual price for this time of the year. Uzbekistan has witnessed robust onion exports, with approximately 48 thousand tons exported in the first ten days of May 2023. Surprisingly, Tajikistan sells onions at almost half the price compared to Uzbekistan.
Frost damage to the winter onion crop in Uzbekistan may have significant implications for the market. With rapid onion exports, the domestic market might once again become the main driver of price growth.
In Georgia, onion prices have been volatile. A shortage of onions led to a sharp price increase to $1.2 per kg and higher, but this resulted in reduced sales and increased imports. Prices subsequently fell, reaching around $0.59 per kg by May 12, lower than the previous year. The revaluation of the Georgian Lari has favoured onion imports, and increased onion cultivation by local growers may keep price trends dynamic for the next 4-6 weeks.
In countries where the new crop of onions does not dominate, such as Ukraine, Moldova, and Poland, prices remain historically high. Despite the arrival of new crop onions from warmer regions, prices have not significantly decreased and, in some cases, have even continued to rise.
Ukraine stands out with stable wholesale prices at approximately $1.15 per kg, despite substantial imports. Cold spring weather and occupation of the traditional early onion production area have hindered local onion availability. Moldova and Poland also experience similar price trends, with onion prices reaching around $0.90 per kg. These prices are at all-time highs for this period, but lower than the levels seen in mid-March 2023.
Poland is expected to rely on significant onion imports from Central Asian countries, similar to 2019 when onions were actively imported from Kazakhstan, Uzbekistan, Kyrgyzstan, and Tajikistan.
Source: east-fruit , Photo https://www.pexels.com/photo/onions-in-close-up-photography-6316528/
16 May 2023
