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New Onion Harvest in Uzbekistan and Tajikistan Brings Record-Low Prices

by Devendra Kumar
May 7, 2024
in Market, News, Onion, Retail
0
New Onion Harvest in Uzbekistan and Tajikistan Brings Record-Low Prices

In a surprising turn of events, the prices for new onions in Uzbekistan and Tajikistan have plummeted, causing a stir among local vegetable growers. Wholesalers are now paying a meager 10-12 US cents per kilogram for the high-quality, sorted, and packaged product, which was once considered a lucrative early vegetable crop. Farmers are receiving even less for their onions directly from the farm, with the wholesale market offering a tonne of the 2024 harvest for just US $100.

Tajikistan stands out with even lower prices compared to Uzbekistan, attributed to an informal ban on onion exports implemented back in February 2024, the reasons for which remain undisclosed. The uncertain status of this export ban leaves the market in a state of flux.

The drastic drop in prices for the new crop of onions comes as a stark contrast to previous years. Farmers who were accustomed to receiving significantly higher payments for their produce are now facing unprecedented lows. Wholesale prices for onions from the 2023 harvest in Uzbekistan now exceed those of the new harvest’s early onions, while prices for last year’s onions remain stable.

Conversely, in Tajikistan, early onions are priced slightly higher than the previous year’s batch, leading to a unique market dynamic where the prices for older onions are stagnant while those for new harvest onions continue to decline.

Forecasts indicate a relatively abundant harvest of early onions in both countries, suggesting that price hikes in the near future are unlikely. Market participants are anticipating a potential rebound in exports by mid-May, which could help stabilize onion prices in Central Asia. However, expectations of a return to the pricing levels of the past two seasons remain cautious.

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