San Nong Zhongguo reports that the onion price has shown frequent fluctuations in recent days. The price increased signifcantly in the week after the Spring Festival. The price of purple onions increased from 1400 yuan [220.82 USD] per ton prior to the Festival to 1600 yuan [252.37 USD] per ton afterwards. The price increase, however, only lasted for a brief period. The price suddenly dropped 10 days after the Festival, and in the last 10 days there has been a price decrease of 400-600 yuan [63.09-94.64 USD] per ton.
The Chinese onion market is divided into north and south. The main reason for this division is the difference in product quality. Yunnan is currently in their new production season. The quality does not show any change and the market price is quite reasonable. Onion farmers currently enjoy an impressive profit. In Gansu, however, the weather became warm quickly after Spring Festival. Supply sources outside of warehouses have already dried up, and the ratio of stored onions that show sprouts increases. Traders with stock vigorously sell, but visiting traders are reluctant to buy. The market price has shown a downward trend for days.
It is difficult to avoid a situation where supply exceeds demand in the short term, so onion prices are not likely to rise. Add to this the vigor with which Gansu traders bring their stock to the market, and the new supply from Yunnan onion farmers. The market is currently a buyer's market. All these developments combined mean that onion prices in the short term will remain stable, but with a possibility of a slight decrease.
Source: cnr.cn