Key agreement signed to ramp up local onion production

MUSCAT: The Ministry of Agriculture, Fisheries, and Water Resources (MAWFR) has announced the signing of an agreement for the domestic cultivation of red onions with an annual capacity of 700 tonnes in the Wilayat of Dhank in Al Dhahirah Governorate.

The agreement, inked with Dhank Company for Agricultural Production and Marketing, aims to meet local market demand for onions, as well as strengthen broader national food security goals.

According to the Directorate General of Agriculture and Water Resources in Al Dhahirah Governorate, financial assistance for the company will be provided through the Agriculture and Fisheries Development Fund. Additionally, the Ministry will provide technical support to implement modern agricultural technologies.

The company had previously signed a usufruct agreement with the Ministry of Housing and Urban Planning for land spanning an area of 1,000 acres for the project.

Earlier this year, the price of red onions rose by 300 per cent in the country in accordance with market trends, from 0.140 baisas per kilo in 2023 to 0.600 baisas per kilo by mid-February 2024.

This increase was primarily due to a months-long suspension of onion exports from India—imposed by the Indian Government—which accounts for 44 per cent of total onion imports into Oman, with a volume of 43,000 tonnes per year.

Using estimates based on data provided by MAWFR, the total onion supply in the country stands at around 106,186 tonnes per year, only 14 per cent of which comes from local production (14,866 tonnes per year).

Although the new project will contribute an approximate 0.66 per cent increase to this figure, it marks a step forward in establishing self-sufficiency, officials stress.

In an earlier statement to the Observer, the Ministry shared that it is in the process of expanding local onion production and cultivation, which will also present various investment opportunities.

Furthermore, the Ministry expressed its interest in developing onion-adjacent industries in the process.