Onion prices surge 300% in Oman

Unsplash.com

Onion prices have increased by 300 percent in Oman, primarily due to a ban on exports from India, according to a local media report.

Prices rose from 0.14 baisas ($0.36 cents) per kilogramme in 2023 to 0.47 baisas per kilogramme in December of 2023, before surging to 0.6 baisas per kilogramme by mid-February 2024, the sultanate’s Ministry of Agriculture, Fisheries and Water Resources told Oman Daily Observer.

India accounts for 44 percent of imports by Oman.

• Oman’s wheat production surges 230%
• Oman and India accelerate talks on trade deal
• India aims to sign trade deal with Oman this month

“The crisis of onion prices began on December 8, 2023, and is expected to continue until March 2024, to address the price increase in their local markets due to floods affecting production in India and some Asian countries,” said an official.

To counter the situation, the ministry is actively pursuing direct imports from alternative onion-producing nations, including Iran, Turkey, Egypt, Pakistan and Yemen.

Last week, the Federation of Saudi Chambers said that onion supply chain disruptions and price hikes were not confined to the Saudi market.

However, contrary to concerns, the Saudi market is not vulnerable to a shortage of onion crops, as the kingdom’s total consumption reached 702,000 tonnes in 2023, with local production contributing nearly 365,000 tonnes.