Market update: Dried Onion
Dried Onion is a funny commodity. It’s one of the most popular spices, as it’s a staple of just about every cuisine, and produced in huge quantities all across the world. Yet, every time onion crop arrives, prices are all over the place. Onion farmers know their product is in demand, and so are unwilling to be the ones to start negotations. Buyers know when production is ongoing and harvesting has started, so they don’t want to start talks either. The rule is straightforward: he who starts the talks, has the worse side of the bargain. After the first big purchases come in, it’s a different story altogether and usually is a race to the bottom: each producer tries to unload their supply first while the goods and demand are both still fresh.
The most recent such season was last month. Now, 100% of the processing of fresh onion to dried has started, and the price of onion is said to be at the rock bottom. In India, rumours have it that insufficient waters mean some shortage in supply for the next crop cycle in a few months. The thinking is that prices will start to trend upwards now that most big purchases have already been done.
Others say that with these low prices, many factories will still want to capture in their profits from stocks bought, and continue to compete with each other to supply at low levels. It’s better to be safe than greedy!
Market price today
100G REFILL BAG HKD 20
200G REFILL BAG HKD 27
500G REFILL BAG HKD 54
1KG WHOLESALE PACK** HKD 90
10KG CARTON** HKD 700
1MT+ please enquire
Buy Regency Dehydrated Onion Powder, Grade A, skin removed, from Shandong China. Also follow the link for more details.
