Onion prices in Russia have started to drop this week. Growers report a noticeable decline in demand, while market supply keeps increasing. The increase in supply is due to the desire of growers to get rid of substandard onions.
Growers are ready to ship onions at 10-18 RUB/kg ($0.13-0.24), which is on average 13% cheaper than at the end of the last week. Due to the decrease in the activity of buyers, most of the growers are suspending sales of high-quality onions, trying to provoke a price increase.
Russian wholesale companies and retail chains see no reason to increase the price, since many growers have large stocks of onions unsuitable for long-term storage, which they sell now. Also, there is a sufficient volume of onions growers in Kazakhstan on the market, so the required volumes of onions for current sales can easily be purchased from wholesale companies.