Steep 300% jump in onion prices: MAFWR
Published: 04:02 PM,Feb 17,2024 | EDITED : 08:02 PM,Feb 17,2024
The increase in prices was mainly caused by the suspension of onion exports from India.
MUSCAT: Onion prices have increased by 300 per cent above the average wholesale price, according to officials at the Ministry of Agriculture, Fisheries and Water Resources (MAFWR).
In an Observer exclusive, officials shared that the price of onions increased from 0.140 baisas per kilo in 2023 to 0.474 baisas per kilo in December of 2023, before surging to 0.600 baisas per kilo by mid-February 2024.
According to the Ministry, the increase in prices was mainly caused by the suspension of onion exports from India, which accounts for 44 per cent of total onion imports into Oman.
“The crisis of onion prices began on December 8, 2023, and is expected to continue until March 2024, to address the price increase in their local markets due to floods affecting production in India and some Asian countries,” said an official.
“[It was] due to the halt of onion exports to Oman from India, where Oman imports about 43 thousand tonnes annually of Indian onions, which accounts for 44% of the total onion imports (in 2022).”
To tackle the price increase, the Ministry says it is in process of opening direct imports from other onion producing countries including Iran, Turkey, Egypt, Pakistan and Yemen.
Last year, India implemented a ban on onion exports until March 2024 to address the matter of rising produce prices amidst climate change concerns. Additionally, several producing countries like Egypt and Yemen have implemented similar bans.
Currently, local onion production stands at 14,866 tonnes per year accounting for only 14 per cent of onion supply in the country, said the Ministry, adding that it is in the process of expanding local onion cultivation and increasing self-sufficiency, while also developing onion adjacent food industries.
Additionally, it will also provide investment opportunities to facilitate the expansion of onion cultivation across various governorates of Oman.
The daily trade in onions ranges between 300 and 400 tonnes, according to the Ministry.
In an Observer exclusive, officials shared that the price of onions increased from 0.140 baisas per kilo in 2023 to 0.474 baisas per kilo in December of 2023, before surging to 0.600 baisas per kilo by mid-February 2024.
According to the Ministry, the increase in prices was mainly caused by the suspension of onion exports from India, which accounts for 44 per cent of total onion imports into Oman.
“The crisis of onion prices began on December 8, 2023, and is expected to continue until March 2024, to address the price increase in their local markets due to floods affecting production in India and some Asian countries,” said an official.
“[It was] due to the halt of onion exports to Oman from India, where Oman imports about 43 thousand tonnes annually of Indian onions, which accounts for 44% of the total onion imports (in 2022).”
To tackle the price increase, the Ministry says it is in process of opening direct imports from other onion producing countries including Iran, Turkey, Egypt, Pakistan and Yemen.
Last year, India implemented a ban on onion exports until March 2024 to address the matter of rising produce prices amidst climate change concerns. Additionally, several producing countries like Egypt and Yemen have implemented similar bans.
Currently, local onion production stands at 14,866 tonnes per year accounting for only 14 per cent of onion supply in the country, said the Ministry, adding that it is in the process of expanding local onion cultivation and increasing self-sufficiency, while also developing onion adjacent food industries.
Additionally, it will also provide investment opportunities to facilitate the expansion of onion cultivation across various governorates of Oman.
The daily trade in onions ranges between 300 and 400 tonnes, according to the Ministry.