Onions continue to fall in price on the Russian market. According to the EastFruit project, the trend towards a price decline was outlined in the previous week, and since Monday, manufacturers have been forced to revise prices more actively, citing weak demand. Russian farmers are seriously concerned about the current situation, because the harvesting of late varieties of onions has not yet begun, and demand remains very low even amid a rapid decline in prices.
According to the project, only in the last week onion in the Russian market has fallen in price by an average of 22%. Today, farmers in the main regions of production are ready to ship these products at 11-18 rubles / kg ($ 0,17-0,28 / kg), depending on quality and variety.
According to market participants, the downward price trend is dictated, first of all, by the large supply of products on the market, while the demand for onions is not high enough. Most households began to actively sell available stocks of substandard products. At the same time, a number of farmers report that due to rains this season there are very few quality onions suitable for laying for storage. Because of this, the percentage of losses and the share of substandard products, which manufacturers seek to market in the first place, have noticeably increased.
Note that at the moment, onions in the Russian market are on average 24% more expensive than in early August 2018. Nevertheless, many market operators are sure that such low prices are a temporary phenomenon and closer to mid-September, prices for high-quality onions can begin to increase rapidly, when resellers begin to purchase products for laying for storage. At the same time, due to adverse weather conditions, the percentage of substandard onions, which cannot be stored, significantly increased.
Source: https://east-fruit.com/