The Federation of Saudi Chambers (FSC) addressed the recent onion crisis, emphasizing that it is a global issue affecting multiple countries. The statement reassured consumers that Saudi Arabia is not facing an onion shortage.
Domestic onion production in 2023 reached approximately 365,000 tons, fulfilling 52% of the Kingdom's consumption, which stands at 702,000 tons. The remaining demand was met through imports.
The FSC attributed the surge in onion prices and supply chain disruptions to reduced production levels in exporting countries due to prevailing global circumstances. This situation has resulted in a decline in onion imports from certain countries into the Kingdom.
The FSC is actively collaborating with relevant authorities to monitor onion crop availability, promote domestic cultivation, and follow up on contracts with suppliers. Efforts are also underway to diversify onion import sources from different countries to meet local market demands.
The food abundance committee, in collaboration with the FSC's agriculture national committee, conducted a study to assess the impact of a three-month onion export ban imposed by a specific country. The committee recommended closely monitoring local supply, stocks, and contracts with the private sector. Additionally, initiatives were taken to incentivize local farmers to cultivate onions through operating loans from the Agricultural Development Fund (ADF).
The FSC urged onion importers and local farmers to ensure a consistent supply of onions and to diversify import sources by engaging with various countries worldwide. The Federation anticipates stability in onion prices and an ample supply in the Saudi market starting in February, coinciding with the commencement of local harvests to meet market requirements.