South Korea's government has announced a set of supply and demand measures aimed at stabilising the onion market, as wholesale prices continue to decline. The Ministry of Agriculture, Food and Rural Affairs said the measures include exports of government stockpiled onions and short-term retail discount support to encourage consumption.
According to the ministry, late-January wholesale prices for standard stored onions averaged 1,022 won per kilogram, equivalent to about US$0.76. This represents a year-on-year decline of 27.6% and is 23.3% below the average of previous years. Although wholesale prices for stored onions usually rise between January and March ahead of the new harvest, the total stock of 2025 stored onions, including government reserves, is estimated to be 8.7% higher than last year.
The ministry attributed the price pressure to a combination of weaker demand and increased shipments of onions with lower market quality. Officials said that if prices remain at current levels through February and March, there could be an impact on field transactions and on the supply and pricing of new-season onions, making early intervention necessary.
As part of its response, the government plans to export 15,000 tons of onions from the 25,000 tons of onions it purchased and stockpiled. Destinations include Vietnam, Taiwan, Japan, Malaysia, and other markets. The remaining 9,600 tons will be used only on a limited basis and only in the event of unexpected supply and demand disruptions, such as a rapid price increase after new onions begin shipping in late March.
To stimulate domestic consumption, the ministry will provide discount support of up to 40% at large and small supermarkets and traditional markets through the 16th of this month. Additional promotional campaigns and discount programs for domestically produced onions are planned for next month, in cooperation with NongHyup Agribusiness Group and the onion checkoff fund.
The ministry also said it will tighten quality sorting at wholesale markets. Measures include strengthening distribution agreements between NongHyup and producer organisations to limit shipments of onions with poor storability or low marketability, which are seen as contributing to price declines. Until early-harvest onions begin shipping in March, cooperation with agencies such as the Korea Customs Service and the Ministry of Food and Drug Safety will also be reinforced to control illegal imports and ensure inspections for pesticide residues.
Hong Inki, Director General for Distribution and Consumer Policy at the ministry, said, "This onion supply and demand management measure goes beyond a short-term response to prices and has been implemented as a preemptive step to ensure overall supply and demand stability for onions this year." He added that the government will continue to monitor market conditions during both price increases and declines and respond when needed.
Source: Asia Business Daily
