Saudi Arabia: Onion Supply Assured Amid Rising Prices and Issues
The Federation of Saudi Chambers (FSC) addresses the global onion supply-chain crisis, emphasizing that the surge in prices extends beyond the Saudi market.
According to the FSC, local onion production in 2023 covered approximately 52% of the Kingdom's consumption, amounting to around 365,000 tons, while the remaining demand was met through imports.
However, disruptions in global supply chains and decreased production levels in exporting countries have led to a decline in onion imports to Saudi Arabia from certain regions. Consequently, onion prices have experienced a significant increase due to the prevailing global circumstances.
To address the situation, the FSC collaborates with relevant authorities to monitor onion crop abundance domestically, encourage local cultivation, and oversee contracts with suppliers. Efforts are underway to diversify import sources and expand options for onion imports from various countries to meet local market demands. Additionally, the food abundance committee, in collaboration with the FSC's agriculture national committee, conducted a study to assess the impact of export bans on onion imports. As a result, measures were recommended to monitor local supply, stocks, and contracts with the private sector, along with incentivizing local farmers to cultivate onions through agricultural loans.
Importers and local farmers are urged to take the necessary measures to ensure a consistent onion supply and diversify import sources to mitigate potential shortages. The FSC anticipates stability in onion prices and an adequate supply in the Saudi market starting in February, coinciding with the commencement of local harvests to meet market requirements. Overall, the assurance from Saudi Arabia's authorities aims to alleviate concerns over onion shortages and mitigate the impact of rising prices on consumers and businesses alike.
