Today you can buy onions in Tajikistan literally for a penny – what is the reason for the collapse in prices?


You can buy onions in Tajikistan today literally for a penny – what is the reason for the collapse in prices?

06/22/2020

The main reasons for the decline in onion sales and low prices were overproduction and logistics difficulties

According to EastFruit analysts, in recent days in Tajikistan there has been a sharp collapse in prices for new onions. Farmers are at a loss – they have already reduced prices to 0.5 somoni per kg (5 US cents per kg), but buyers for onions can hardly be found anyway, so further price reductions cannot be ruled out.

The consultant of the Food and Agriculture Organization of the United Nations (FAO), Bakhtiyor Abdukhuhidov, reports from Tajikistan that the main reasons for such a deplorable situation with the sale of onions are overproduction of products and logistics difficulties.

“Onions were sown a lot, since last year there was a high price due to export to European countries. However, due to quarantine measures due to coronavirus, sales have recently declined when onions were harvested in the south. Now the onions are also being harvested in the north of Tajikistan, and the southern onion was simply not needed by anyone, because exporters are all in the north. Nobody goes to the south now, everyone buys in the north. The center and the south of Tajikistan were left completely without buyers, except for insignificant sales of products on the domestic market. Since the export of onions comes from logistics centers in the north, now you do not have to carry onions through the 400 km pass in one direction. Well, and another factor – difficulties with logistics due to hot weather – today we promise +42 +44 degrees Celsius, and trucks can be driven only at night so that asphalt is not spoiled, ”Bakhtiyor Abdukhuhidov explains.

See also: Price reduction in the Russian Federation and Moldova. Onion market overview for the 25th week of 2020.

Farmers are now actively looking for free refrigerators in order to preserve the products for a while, in the hope that prices will stabilize. Nevertheless, this is unlikely, because in Russia harvesting of winter onions in the southern regions of the country has already begun, and prices there also tend to decrease.

The situation could be corrected by freezing onions, if it existed. However, for now, the country’s entrepreneurs are in no hurry to invest in this promising segment of the produce business. Therefore, most likely, the onions will be massively dried in the sun – since the weather allows. Farmers hope that they will be able to sell dried onions later. Previously, such a business was very popular, but with the growth of onion exports to Russia, prices rose so much that drying onions became less profitable than fresh sales.

Nevertheless, there are fears that onion prices in Tajikistan will fall so much that it will become unprofitable to clean it. “A couple of years ago this already happened. At our labor costs, when an employee agrees to harvest onions for $ 5 a day, the prices of onions were lower than the cost of harvesting a kilogram of products, ”says the FAO consultant.

The EastFruit team encourages Tajik farmers to actively use the EF Trade Platform, where the largest number of participants is concentrated among all international trading platforms. If it’s not on the Telegram phone, you can sell the bow by posting an ad on the site using this link.

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