The newly harvested onions in the Chinese province of Gansu came onto the market in July. The price of yellow onions has remained stable, while the price of red onions has increased since mid-September and rose sharply at the end of October. And prices are still rising.
Jining Greenfarm Import and Export is mainly involved in onion exports. The company’s Jack Meng said the fluctuation in onion prices in recent months is related to the reduction in production in some key production areas and the increase in onion export tariffs in India.
“India is a major supplier and exporter of onions and also a major onion consumer. Due to weather conditions, local onion production has been reduced in the new season. To safeguard domestic supply in India, the local government introduced a policy in early September whereby export tariffs were increased to limit exports. As a result, onion prices in China rose in mid-September, but not by much. At the end of October, the Indian government reintroduced relevant measures to restrict onion exports, causing local export prices to rise rapidly. in China followed suit and increased by about 35-40% compared to mid-September and it is possible that this increase will continue.”
“On the other hand, production in China has also declined. This season, Gansu has experienced large temperature fluctuations during the onion growing period, as well as a lack of rain and drought in spring, which has reduced unit yields in some areas with about 20%. The total yield has fallen, the products have been sold for three months at the end of October, and the total storage has gradually decreased, causing the price to rise faster. In addition, some onion-growing areas in Europe have also suffered this year experienced reduced harvests due to natural disasters.”
According to Jack, onion prices still have room to rise in the future and there will likely be another wave of price increases within 1-2 weeks. The extent of this is difficult to predict. “Significant increases may not last long, but prices have been high recently and have continued to rise. It is advisable to buy cautiously.”
Jining Greenfarm Import and Export is mainly involved in the processing, storage and export of onions and also exports garlic.
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Jining Greenfarm Import and Export Co., Ltd.