According to the data of the daily monitoring of the EastFruit project, onion prices in Russia have started to decline this week. Onion growers report a noticeable weakening of the demand, while the supply on the market keeps increasing. The increase in supply is due to the desire of growers to get rid of substandard onions, the quality of which was affected by the rains in the first half of autumn. At the same time, the demand for them remains relatively low. Such onions are mainly purchased by chains and resellers for current sales, as they are almost unsuitable for long-term storage.
To date, growers are ready to ship onions at 10-18 RUB/kg ($0.13-0.24/kg), which is on average 13% cheaper than at the end of the last work week. Due to the decrease in the activity of buyers, most of the growers suspend the sale of high-quality onions, thereby trying to provoke a price increase in this segment. Meanwhile, Russian wholesale companies and retail chains see no reason to increase the price, since many Russian growers have large stocks of onions unsuitable for long-term storage, which they sell now. Also, there is a sufficient volume of onions growers in Kazakhstan on the market, so the required volumes of onions for current sales can easily be purchased from wholesale companies.
It should be noted that even after the price reduction, onions in Russia still cost an average of 12% more than in the same period last year. Nevertheless, most market players do not exclude a further decline in prices in this segment, since the market is currently oversaturated with low-quality onions. Growers that do not have their own storage facilities will keep reducing prices in order to sell the main volumes before the onset of frost.
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