According to EastFruit analysts, onion prices in Uzbekistan have begun to rise recently. Since mid-January 2024, wholesale prices of onions have already increased by 28% or 4 US cents per kg.
However, onion prices in Uzbekistan are still four times lower than at the same time of 2023 and are also still lower than during harvest. Therefore, the current price of onions does not allow an average local wholesaler to make any money and they are trying to squeeze any additional penny when negotiating with buyers.
According to market participants, the rise in onion prices in recent weeks is caused by an increase in the volume exports to the European Union countries. In particular, there are a lot of onions from Uzbekistan on wholesale markets of Poland, which helps to contain domestic prices in this country.
It is interesting to note that the difference in wholesale onion prices between the Polish market and the Uzbek market is currently not high enough to cover the cost of exports. However, according to market participants, government subsidies for transportation help solve this problem.
In addition, trade sources from Poland report that intermediaries from Belarus are actively involved in the onion trade, purchasing onions from Uzbekistan and Tajikistan, and reselling them to Poland at a very attractive price.
Let us recall that Uzbekistan is one of the ten largest world exporters of fresh onions, exporting annually from 200 to 250 thousand tons of these vegetables. In the 2023/24 season, onion exports from Uzbekistan are expected to be at a record high, and, according to EastFruit estimates, could exceed 300 thousand tons for the first time.
For more information: east-fruit.com