Since last October, the price of onions in China has remained unusually high, marking a level of pricing not seen in the last two decades. The situation saw a further increase in onion prices when India extended its ban on onion exports indefinitely on March 31. Despite this, the surge in prices was modest due to the already elevated price levels. Currently, there is no significant increase in purchase volumes, leaving the market in a state of uncertainty. "The market is currently in a wait-and-see phase," stated Mr. Jack Meng from Jining Greenfarm Import and Export Co., Ltd.
Jack noted that since the beginning of March, the price and sales volume of Chinese onions have been on a gradual decline, with the market eagerly awaiting the resumption of onion exports from India. Following India's announcement, there was a rebound in Chinese onion prices, though the increase was below 10%.
"The industry is currently cautious, adopting a wait-and-see approach regarding the extension of the export ban. The term 'indefinitely' raises questions: Does it imply an extension for a few months or several years? With the situation still uncertain, the market is acting conservatively. Especially, Southeast Asian buyers, who typically rely on Indian onions, have not rushed to increase their purchases of Chinese onions, fearing potential losses should India resume exports soon," he explained.
"Moreover, Gansu, a leading onion-producing region in China, has limited stock in the market following the harvest season. The current supply mainly comes from Yunnan, Sichuan, and other areas. Adverse weather conditions have affected the quality and shelf life of Yunnan's new-season onions, not matching previous standards. Despite this, the high market prices have led to a two to threefold price increase compared to past years, deterring buyers from increasing their purchases. Should the ban continue into July, when Gansu's onion harvest begins, the market might react differently," Jack added.
Jack also mentioned that in recent years, Chinese onions have made inroads into markets in the Middle East, Europe, and South America, proving competitive in both quality and price. "Even with the resumption of Indian onion exports, I am confident that Chinese onions will remain strong competitors," he asserted.
Jining Greenfarm Import and Export Co., Ltd. specializes in the processing, storage, and export of onions and garlic.