Cost of Onions Out of Reach for Many Egyptians

The prices of onions in Egypt have risen by about 400% in just one year

Merit Ashhad

The prices of onions in Egypt have risen by about 400% in just one year, reaching 40 Egyptian pounds (1.29 dollars) in popular markets and 50 pounds (1.62 dollars) in middle-class outlets. At the beginning of the harvest season last March, the price of onions was approximately 10 pounds (0.32 dollars) per kilogram, while it reached 3.5 pounds (0.11 dollars) on September 22 of the previous year.

The crisis began at the end of last September when the price of onions reached 25 pounds per kilogram for the first time in Egypt’s history, prompting the government to issue a decision to suspend exports for three months.

Although onion prices slightly declined in the past two months to around 20 pounds (0.65 dollars) per kilogram, with the approaching end of the previous export suspension decision on December 31, the price skyrocketed to the extent that Egyptians started looking for alternatives, such as using green onions for cooking.

The Egyptian government has once again added onions to the list of prohibited goods for export and imposed a ban on exports until March 30.

Sugar was banned from export before onions in the first quarter of this year, and the decision was extended. The export ban on rice also continued to ensure the needs of the local market, with tighter control over outlets. The Minister of Supply and Internal Trade affirmed that the ministry is making efforts to provide essential goods in line with the directives of the political leadership and to enhance food security.

The increase in the prices of basic commodities is a matter of public concern, leading members of the parliament to submit inquiries to Prime Minister Mustafa Madbouly and the ministers of agriculture and supply regarding the crisis of rising prices of onions, sugar, and vegetables. One lawmaker attributed the price increase to the lack of effective market control, questioning the utility of having a Minister of Supply.

Reports indicate that the Egyptian government has taken measures to address the crisis, forming a committee to regulate markets and commodity prices. Prime Minister Mustafa Madbouly held a meeting in October to monitor the availability of foodstuffs in the markets and regulate prices, with the participation of the central bank governor, ministers of supply, finance, agriculture, trade and industry, and other officials.

Despite the onion price crisis Egypt exported 280,000 tons of onions last year, and the total exported this year until the export suspension decision is around 380,000 tons. Onions rank third in Egypt’s agricultural exports after citrus fruits and potatoes. Egypt is the fourth-largest onion producer globally, following China, India, and the United States.

According to official figures, Egypt’s agricultural production increased during the 2022/2023 export season, reaching 5.669 million tons valued at 3.556 billion dollars, compared to 4.385 million tons valued at 2.86 billion dollars during the previous export season, with a growth rate of 29.2% in quantity and 24.6% in value.

The government official attributes the crisis of rising onion prices to a “reduction in the cultivated area for the crop this year, in addition to the damages resulting from climate changes.” Analysts point out that farmers reduced the cultivated area this year due to the lower onion prices in the previous season, along with Egypt’s vulnerability to climate changes, as the heatwave destroyed a significant portion of the crops.

In a related context, the head of the Farmers Syndicate, Hussein Abu Saddam, sees the crisis of rising onion prices not only as a local issue but a global one, noting the low production in major onion-producing countries such as India, Pakistan, and China. Abu Saddam adds that this year’s onion crop was limited because farmers were selling a kilogram of onions for one pound (0.032 dollars) or 2 pounds (0.065 dollars) last year. Consequently, many farmers refrained from planting onions this year. Despite the limited production, onion exports increased this year, leading to the current scarcity in the market.

Abu Saddam considers the crisis in the onion market fundamentally an administrative crisis, as Egypt’s onion production reaches 3 million tons, achieving self-sufficiency in this crop. He excludes blaming the Ministry of Supply for the price hike because the ministry does not buy onions from farmers; instead, onions are in the hands of traders.

Cultivating one acre of onions requires more than 30 workers during planting, service, and harvesting periods, in addition to a similar number of storage covers, sorting stations, and packing and export stations. Onions are considered a cash crop in Egypt, ranking third in exportable crops after citrus fruits and potatoes. About 600,000 tons of fresh onions and 20,000 tons of dried onions, produced by drying 200,000 tons of fresh onions, are exported. Due to the reduction in the rice cultivation area and the halt in rice exports, and the decline in the status of cotton, onions have become the most important and only exportable crop that ordinary farmers can sell to exporters without the need for government permission.

Despite the global market’s supply shortage, international demand, and rising prices, Egyptian onion farmers, particularly over the last decade, have suffered significant losses, reaching $500 per acre in the last two years. Wholesale prices in the field for two consecutive seasons fell to between half a pound and one pound per kilogram. This is attributed to the inconsistency in cultivation methods, fluctuations in the cultivated area from year to year, and the absence of regulation in agricultural planning that balances production and consumption. Often, production exceeds the local consumption rate.

Onion cultivation is considered one of the essential components in the Egyptian popular cuisine, spreading in almost all Egyptian governorates. Onions are a fundamental ingredient in many famous dishes such as “koshari.” Onions are planted three times throughout the year, with the cultivation area in Egypt reaching about 200,000 acres annually.

Onion cultivation provides an important opportunity to create job opportunities and combat unemployment, relying on a significant amount of agricultural labor. Despite the challenges facing the agricultural sector, Egypt holds a leading position globally in the trade of fresh and dried onions. Egypt ranks third in the world in terms of onion production after China and India.

Egyptian fresh onions are globally recognized for their quality, characterized by features such as high heat tolerance, the ability to withstand trading, shipping, and transportation processes, in addition to the capability for long-term storage and availability throughout the year. Egypt also possesses unique varieties of onions developed locally in agricultural research centers, known for their adaptation to favorable climate and agricultural environments, utilizing the fresh waters of the Nile, and benefiting from the vast experience of Egyptian farmers.

The industry of dried onions enjoys significant popularity both nationally and internationally, standing out as one of the successful industries in Egypt. Egypt ranks third in the export of dried onions, distinguished by high quality and competitive prices. Nearly 50% of its total exports are directed to European countries, with the remaining percentage heading to Japan, Russia, the United States, Canada, the United Kingdom, and Latin American countries. Egypt competes with India, the United States, and China as one of the world’s largest exporters of dried onions.

Regarding market expectations, the Farmers Syndicate president anticipates a significant decline in onion prices in mid-March or April of the coming year. He expects the upcoming season to be prosperous due to the cultivation of large quantities of onions planned by the Egyptian government this year.

Merit Ashhad
Egyptian journalist

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