Currently, onion prices have dropped significantly. Now the wholesale price is generally RMB 1 to 1.3 yuan/kg, which is more than 20% lower than the price in early March. The onions currently sold on the market are from winter storage. Some of onions are from Shanxi and Heilongjiang province, but most of them are products of Gansu province. It was a bumper year for onions in North China last autumn, and the amount of winter storage exceeded that of the previous year.
Onions
At the beginning of this year, the selling price in the market was just the same as the field price of onions last autumn. The costs of storage, transportation, losses, and sales & marketing fees were all taken by wholesalers, so that onion wholesalers generally operated at a loss. Current onion prices keep on declining, and the financial losses of onion stocks will continue to climb up.
The drop in onion prices is mainly due to the pressure from the upcoming fresh new onions. The onion stock is still high, and it has been the harvest time for new onions in Yunnan province. What's more, the production of new onions in Yunnan is higher than in previous years. In order to reduce losses, stockholders have to clear the inventories before the new onions arrive on the market, so that a price drop is inevitable.
Source: epaper.sxrb.com/index_sxnmb.shtml