Onion prices have collapsed by over 30% following excessive seasonal supply. And the Zambia National Farmers Union – ZNFU has attributed the current low prices of onion on the market to the overwhelming availability of the commodity as most farmers are currently harvesting their crop.
Speaking in an exclusive interview with the Zambian Business Times – ZBT, ZNFU Public Relations Manager Calvin Kaleyi attributed the collapse in prices on the market to over supply, with onions and the stocks being sold to have exceeded demand.
Kaleyi explained that, “If the market is saturated and is over supplied, basically the prices will come down. The market is now saturated and it has plenty onion supplies and the stocks are exceeding demand, so automatically the situation dictates that there should be slow down in prices, so this is what is happening.”
He said the prices are however expected to again rise towards May and June when there is likely to be low supply. Most farmers pen traders do not have industrial driers to add shelf life to onions, so they are forced to offload. The other option is to grow onions as a winter crop so that harvesting and marketing is during period of low supply.
Onion prices as measured by the Jesuit Centre for Theological Reflection (JCTR) Basic Needs and Nutrition Basket (BNNB) for the month of January 2023 have declined by K37.78 from the month of December. A 4kg onion pouch went down by K37.78 from K117.69 (K29.42/1 kg) to K79.91 (K19.98/1kg), a drop of 32%.
Onion can also be exported but lack of investments, aggregation and follow through continues to hinder local onion farmers growth and development. However, commercial farmers are able to grow high quality onions, have purpose built driers and export excess to retain profitability.
