'No disaster is only a disaster' is a frequently heard cry in the onion market. A failed harvest in India is now providing an incentive for the sale of Dutch red onions.
A difficult growing season combined with a monsoon caused last season crop failure in onion cultivation in India. Normally, India is the largest exporter of red onions. Thanks to the crop failure, Indian policy makers decided that onions could no longer be exported to neighboring countries. Destinations such as Sri Lanka and Bangladesh then approached Dutch exporters with a demand for red onions.
Onions for Sri Lanka
A situation like last year is now presenting itself again. Although the damage in India appears to be less extensive than last year, Dutch processors are preparing to pack onions for Sri Lanka in particular. The logical consequence is that the red onions on the farm have received a boost. As the week progressed, the red onions became more and more expensive. Last Thursday, the stock exchange committee in Emmeloord recorded €12 to €15 for red onions from the field, which means an increase of €3,50 compared to last week.
There is currently no price revival in the yellow onion market. All 3 regional stock exchanges recorded a small minus this week compared to last week. When all quotations are compared, €8 to €10,50 is paid for the yellow onions. There is more trading taking place at these levels. Many onions could be loaded this week. With the prolonged rainfall during the 2019 harvest, many packers choose to have the onions behind shelves. Demand from exports also seems to be slightly friendlier.