News In Brief:
– Onion prices in Kazakhstan plummet to 3 cents per kg due to oversupply, causing distress among local farmers.
– Market downturn and dependence on Russian exports exacerbate economic challenges for Kazakh onion growers.
In a surprising turn of events, onion farmers in Kazakhstan find themselves grappling with a drastic drop in prices, with rates plummeting to as low as 3 cents per kilogram. This development comes in the wake of predictions made by analysts at EastFruit in June 2023, signaling the formation of an onion bubble in Central Asia.
The oversupply of onions has flooded the domestic market, causing a surplus estimated at a staggering 160 thousand tons above local consumption levels, according to a news report. This surplus, believed to be a conservative estimate, has left local farmers in distress, struggling to find buyers for their produce.
With wholesale prices plummeting from US $300 per ton at the start of the harvesting season to a mere US $33 per ton, the economic repercussions for onion farmers are severe. The Ministry of Agriculture of Kazakhstan reports an annual onion production of 1.1 million tons, far exceeding the average consumption of 315 thousand tons.
Compounding the issue is Kazakhstan’s reliance on the Russian market, which typically absorbs a significant portion of its onion exports. With Russia boasting a bountiful harvest of its own, coupled with the surplus from southern Central Asian regions, sales to Russia have dwindled significantly.
Local farmers are bearing the brunt of this market downturn, with livelihoods at stake as they struggle to offload their produce at rock-bottom prices. A viral video depicting sheep being fed with surplus onions serves as a poignant reminder of the challenges faced by farmers amidst this crisis.
