The Federation of Saudi Chambers has said that the Kingdom will be unaffected by a global onion supply and pricing crisis.
In a statement released Thursday, the FSC reassured the public that the Saudi market will not faces shortages due to a spike in domestic production.
It said that local onion production in 2023 reached around 365,000 tons, covering 52 percent of the Kingdom’s consumption, estimated at 702,000 tons. The remaining supply was imported.
The FSC said that recent supply chain disruptions were the result of reduced production levels in exporting countries, which also led to a global increase in onion prices. As a result, the Kingdom recorded a decline in onion imports from certain countries.
The FSC highlighted its collaboration with relevant authorities to monitor onion crop abundance in the Kingdom, promote domestic cultivation and follow up on contracts with suppliers. Additionally, efforts are underway to expand onion imports from countries around the world in an effort to meet local market demands.
As part of the efforts to address the crisis, the food abundance committee, in collaboration with the FSC’s agriculture national committee, conducted a study last year to assess the impact of India’s duty tax and subsequent ban on onion exports.
It was recommended that the committee closely monitor local supply, stocks and contracts with the private sector in cooperation with the competent authorities. The committee was also tasked with incentivizing local farmers to cultivate onions through operating loans from the Agricultural Development Fund.