“Chinese Onion Price Is Currently Quite High”March 13, 2020
India had an onion shortage last year because major production areas suffered from drought. Chinese onion export to India consequently increased. This year, however, the Chinese onion market looks completely different and the onion price shows an overall trend of decline.
Mr. Xue Cuncai of Jinxiang County Cuncai Agricultural Trade Co., Ltd. shared his insights into the current conditions of the Chinese onion market: “Chinese onion export is weak at the moment. Demand is not great and the price is falling. Onions from production areas in Yunnan enter the domestic market in large volumes. The overall production volume is more or less the same as last year. The price is around 2,100 yuan [300 USD] per ton. The price level around this time last year was 1,000 yuan [142 USD] per ton. The onion price is so much higher than last year because onion reserves from last production season are running out. Only production areas in Yunnan are still supplying new onions.”
Jinxiang County Cuncai Agriculture is a company specialized in global export. The company team is always looking for new markets and new business partners to supply with products.
Mr. Xue Cuncai also mentioned, “We export onions to the United States and Canada. The dried shallots we export to the USA come from Myanmar.”
“The new harvest of red onions is currently entering the market. We also export 3-5 cm onions to the USA. Their sales conditions are not bad at all. The export conditions of yellow onions are far less ideal. As the supply volume of onions on the market is growing, the price is coming down. In addition, the onions from Myanmar are quite small. These smaller onions are well-suited for high-end markets, and China does not have this type of onion during this season. Myanmar is quite close to Yunnan, and therefore conveniently located for transport to our company. Furthermore, US market demand is still quite strong. US farmers are not able to produce such small onions because the cost price is too high. Only the small onions imported from China are reasonably priced.”
“The new harvest season is about to start for many different varieties of Chinese onions and, according to Mr. Xue Cuncai: “The Chinese market will enjoy abundant supply of onions in all sizes from May onward. This is also the time of year when the onion export market enters the busiest sales season. As for market preferences, different cities have preferences for different sizes of onions and different varieties. In general, the onions of 7 cm and larger are popular in all cities throughout China. Cities in the northeast of China, Guangdong, and Guangxi, as well as Shanghai, and Beijing also enjoy the 3-5 cm onions. China has more than enough supply of large onions, but the smaller onions almost all come from Myanmar.”
By Fresh Plaza