Onion prices in Georgia doubled last week, compared to previous week, reaching 5 GEL/kg ($2.01) in the wholesale market. The reason is the supply shock, which was felt in the market already in March. EastFruit systematically published an analysis of the local onion markets in project countries, as well as a global market analysis in 2023. It was foreseeable that prices were to skyrocket in Spring before the season of early onions gained strength in producing countries. EastFruit published an article last month where we spoke about the deficit for onions in Georgia. The reasons for this hide behind the changes in the global market in the 2022-2023 season and are less determined by local factors.
What changed in the global market in 2022 that pushed onion prices up?
EastFruit experts pointed out dramatic changes in some major countries for the onion market, due to war and climate that has switched the market state in the 2022-2023 season. Among countries with unexpected turns are Ukraine, Pakistan, Central Asia countries, and Turkey. In each of the listed countries, except for Turkey, onion production was cut down drastically, resulting in increased prices in the end.
In April 2023, 2,500 tons of onions were imported to Georgia, which is almost the same as the same period of the previous year. Russia (67%) and Azerbaijan (17%) were the leading suppliers. Even though Turkey has already started harvesting the early onions, the import of Turkish onions to Georgia is actually not carried out at this stage. The first reason named by the local market players is the high price of Turkish onions compared to other countries, although there are also bureaucratic obstacles from the Turkish side, connected with the issuance of the necessary documents for exporting onions.
