The surge in international demand for Egyptian onions has caused prices on the domestic Egyptian market to rise to an unbearable level for consumers, prompting the government to ban exports from October 1 until the end of the year. Two weeks after the export ban, Bahaa Rajab, chief marketing officer at Glamour Export, comments on the market situation.
Bahaa said, "Onion exports were indeed suspended from October 1. We had to apologize to our customers and we are looking forward to seeing them return as of January 1st next year. The decision to suspend exports has led to a slight reduction in prices on the local market," says the exporter, but stocks that were destined for export are not affected.
The exporter explains, "The quality of onions meant for export is not the same as that sold on the local market. Onions that were to be exported are still being sold at the same prices as before October 1. If we take the average price, it has remained at the same level despite the suspension of exports."
A further reason which does not help to reduce prices is that Egypt is currently in the onion off-season, and the majority of volumes are already exported.
In earlier statements, a trade source told FreshPlaza that Egyptian exports increased from 300 thousand tonnes last year to 600 thousand tonnes this year, despite a drop in acreage, due to high global demand. This has increased prices on the local market by 190% compared with last season.
Several sources have also forecast an increase in onion acreage next season. This is mainly due to renewed interest in onions, which growers had turned their backs on after a difficult season last year. Another reason is the implementation of land reclamation projects, notably the " New Delta " mega-project, which aims to reclaim 924,000 ha in the desert, including at least 7,500 ha for onion production.
For more information:
Bahaa Rajab
Glamour Export
Tel: +201065046693
Email: [email protected]
www.glamourexport.com