The new season of onions in China's Gansu Province began to go on the market in July. The price of yellow onions has remained stable, while the price of red onions has been rising since mid-September, and rose sharply at the end of October. It is still rising.
Jining Greenfarm Import and Export Co., Ltd. is mainly engaged in the onion export business. Jack Meng, from the company, said that the fluctuation of onion prices in recent months is related to the production reduction in some major producing areas and the increase in onion export tariffs in India.
"India is a major onion producer and exporter, as well as a major onion consumer. Due to weather conditions, local onion production has been reduced in the new season. To ensure domestic supply in India, the local government introduced a policy of increasing export tariffs in early September to restrict exports. As a result, China's onion prices rose in mid-September, but not by much. By the end of October, the Indian government once again introduced relevant measures to reduce onion exports, causing local export prices to soar rapidly. China's onion prices followed and rose by about 35%-40% compared with mid-September, and there is the possibility of continuing to rise."
"On the other hand, the production in China has also decreased. Gansu has experienced large temperature changes during the growing period of onions this season, as well as a lack of rain and drought in spring, which has reduced the yield per unit in some areas by about 20%. The total output has decreased, the products have been sold for three months by the end of October, and the total storage volume has gradually decreased, thus accelerating the price increase. In addition, some onion-producing areas in Europe have also experienced reduced production due to natural disasters this year."
According to Jack, onion prices still have room to rise in the future, and there is likely to be another wave of increases within 1-2 weeks, and the extent is difficult to predict. "Significant increases may not last long, but prices have been high recently and have continued to rise. It is recommended to purchase with caution."
Jining Greenfarm Import and Export Co., Ltd. is mainly engaged in onion processing, storage and export business, and also exports garlic.
