The Russian market is witnessing another wave of price reduction for onions, according to APK-Inform: Vegetables and Fruit analysts. As previously reported, many farmers hoped that prices for onions would begin to rise in early spring, as a significant volume of products that had become unusable after the severe February frosts would leave the market, but onion prices continue to fall.
Producers who do not have modern storage facilities report that the quality of the onions stored is deteriorating, as a result they are forced to dispose them at virtually any cost. High-quality onions are sold now for 13-18 rubles/kg ($ 0.17-0.24/kg), which is on average 10% cheaper than a week earlier.
According to market participants, the downward price trend is supported, first of all, by the large supply of products on the market, while the demand for onions is rather low. Most of the producers began to actively sell off their stocks when it started getting wormer. At the same time, a number of producers report that for one reason or another, onions are stored worse than usual in the current season. Because of this, the percentage of losses and the share of substandard products, which producers tend to sell in the first place, have noticeably increased.
It should be noted that at the moment the price of onions in Russia is already on average 37% lower than at the end of March 2020. At the same time, producers no longer count on repeating last year’s scenario, when onion prices began to grow rapidly in the last week of March.
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