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The domestic onion price remained low in the first half of this year, and in many areas the onions were unmarketable. The domestic onion supply has become strained in the middle of December and price differences have grown smaller. Medium-quality onions gradually take over market supply. The price stopped falling and is slowly recovering, though there is certainly room for a price increase later in the season.
Many farmers were alarmed by the low prices earlier this year. The rainy season came relatively early this year, which improved the harvest in production areas in Jiangsu, but the abundant harvest further lowered the overall price of onions.
The current price increase is due to relative supply shortage in some production areas. In Gansu, for example, the overall surface area is several hundred hectares smaller this year. At the same time, some onions suffered from root rot because of poor weather conditions, which decreased the overall production volume.
The price increase is still acceptable, and if the export volume of onions also grows, then the price will certainly improve next year. This should improve the market prospects of onions.
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