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South Korea council urges measures as onion prices drop 28%

The Gyeongbuk Provincial Council in South Korea issued a statement calling for emergency measures as onion prices decline ahead of the 2026 harvest.

According to the Seoul Agro-Fisheries & Food Corporation, the wholesale price of 2025 onions in January 2026 is expected to reach 1,048 won (US$0.78) per kilogram, down about 28 per cent from 1,455 won (US$1.08) per kilogram recorded in January 2025.

Officials say the decline is occurring despite a reduction in onion cultivation area. Authorities view the situation as a structural issue rather than a temporary market fluctuation.

Imports are also contributing to market pressure. Data from the Korea Customs Service shows that total fresh onion imports in 2025 reached 82,626 tons, close to the average annual level of 85,326 tons. However, import prices ranged from US$201 to US$271 per ton, below the average range of US$289 to US$428 per ton.

Authorities also reported cases where imported onions from China contained pesticide residues up to five times the permitted standard of 0.01 mg/kg.

In response, the Gyeongsangbuk-do Provincial Council plans to request several measures from the government. These include isolating government reserve onions from the market before the 2026 harvest season, implementing supply and demand stabilization measures, establishing policies aimed at maintaining appropriate onion prices, and expanding contract farming through the National Agricultural Cooperative Federation to more than 30 per cent.

The council also called for changes to customs clearance, quarantine procedures, and traceability management for imported onions.

Shin Hyogwang, Chair of the Agriculture, Fisheries, and Livestock Committee of the Gyeongbuk Provincial Council, said, "With fertilizer and labor costs continuing to rise while only onion prices keep dropping, the intended cultivation area for onions in 2026 has been surveyed at 16,952 hectares, a 6.9% decrease from the previous year. If the onion cultivation area declines, farmers may switch to crops with similar growing conditions, such as potatoes and garlic, potentially triggering price crashes for those crops as well. The government must move beyond reactive measures and instead establish proactive and systematic supply and demand management policies."

Park Seongman, Chairman of the Gyeongbuk Provincial Council, said onion prices declined rapidly during 2025. "The price of 2025 onions plummeted by over 40% within two months, dropping from 1,368 won in April 2025 (right after harvest) to 767 won in June, falling below production costs. The council will do its utmost to stand by farmers and prevent a situation where onion prices fall short of production costs."

Source: AsiaBusinessDaily

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