Introduction

The rise in prices of certain crops, particularly onions, has been a concern in Egypt. Additionally, there are general factors contributing to the increase in prices of other agricultural products.

Reasons for Onion Price Increase

Hussein Abu Saddam, the head of the Egyptian Farmers’ Syndicate, stated in an interview with Al-Shams TV that there are specific reasons behind the surge in onion prices. He attributed it to the increased demand for Egyptian onions due to floods in India and Pakistan, as well as drought in Europe. The global scarcity of onions led to a higher utilization of Egyptian onions.

Export and Local Market Impact

Abu Saddam mentioned that exporters chose to export onions due to higher profits and limited supply. This resulted in a shortage in the local market, driving up onion prices. He emphasized that the government’s decision to ban onion exports was the right step, but it came late in the export season, which runs from August to September. While it may not decrease prices significantly, it will help stabilize the market.

Effect of Export Ban

The ban on onion exports did lead to a slight decrease in prices in local markets. The Ministry of Trade announced the implementation of the export ban from October 1 to December 31, 2023, for a period of three months, following the decision of the Council of Ministers.

Controversy and Anger

The appearance of Egyptian onions in the Emirates Carrefour store at half the price compared to Egypt sparked controversy and anger among Egyptians. Onions are a staple commodity in Egypt, and the significant price difference further fueled frustration. The distribution of leaflets highlighting the lower prices of Egyptian onions in foreign markets added to public dissatisfaction.

Price Discrepancy: UAE vs. Egypt

Social media users shared a post about discounts offered by Carrefour in the UAE, where “Egyptian red onion” was priced at AED 5 per three kilograms, equivalent to 1.6 dirhams per kilogram. In contrast, the same store in Egypt sold onions for 33 pounds per kilogram. Considering the exchange rate, the price of Egyptian onions in the UAE was 14 pounds per kilogram, excluding transportation and import costs.

Conclusion

The increase in onion prices in Egypt can be attributed to various factors, including global demand, limited supply, and export decisions. The government’s ban on onion exports, although delayed, has had a slight impact on local prices. However, the significant price difference between Egypt and other markets continues to raise concerns among citizens.

Source: Al-Shorouk