What Is The Price of Onion​? The Current Shandong Onion Prices Updating

A Deep Dive Into the Ongoing Price Drop of Red and Yellow Onions in China

📈 Current Onion Prices in Shandong and Henan (as of May 13, 2025)

According to the latest market update, the price of red البصل in Xinye, Henan Province has dropped sharply to 0.26 yuan per jin (~0.52 yuan/kg or $0.07 USD/kg), falling by 0.42 yuan per jin since the beginning of the season. This marks a staggering 61.76% decrease.
Similarly, yellow onions have seen an even steeper decline, falling from 0.58 yuan per jin to 0.20 yuan per jin, a 65.52% drop.

These prices have already fallen below the break-even cost of production, prompting many farmers to rush their produce to market in hopes of minimizing losses. However, the sharp speed and magnitude of the price fall have become a growing concern.

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🧅 Why Are Onion Prices Falling So Fast?

Several overlapping factors are contributing to the downturn:

• Oversupply in Domestic Markets: Starting from early May, large volumes of vegetables from open fields and greenhouses flooded domestic markets, leading to an increased supply of fresh produce.

• Weak Terminal Demand: Consumer purchasing power at downstream markets has weakened, leading to slower overall vegetable sales, including onions.

• Export Decline: Though exports increased temporarily due to low domestic prices, the entry of Indian red onions into Southeast Asian and South Asian markets has weakened China’s export competitiveness.

• Expansion in Planting Area: More areas, including Xinye (Henan), Tancheng (Shandong), and Fuyang (Anhui), have entered the market after Yunnan and Sichuan, resulting in an overall expansion in supply.

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📊 Market Sales Data (May 2025)

According to monitoring from Zhuo Chuang Information, the average daily sales volume in four major wholesale markets across China in May was 319 tons/day, representing:

• A 10.89% decrease compared to April.

• A 19.44% decrease compared to the same period last year.

Most wholesale buyers and downstream users have adopted just-in-time procurement strategies, avoiding large stockpiles and reflecting a conservative market sentiment.

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🌍 International Export Situation

While exports initially increased due to lower domestic prices, the arrival of Indian red onions in the global market—particularly in Southeast and South Asia—has created fierce competition. After the May Day holiday, export processing companies in China have reduced their procurement volume, and demand for small red and pink onions has declined.

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🔮 Outlook for Late May to Early June

• Short-Term Rebound Possible: Areas like Feng County in Jiangsu are expecting harvest delays due to overlapping الثوم harvests and labor shortages. This may temporarily reduce onion supply, offering a short-lived price rebound.

• Long-Term Pressure Remains: However, by late May and early June, major onion-producing regions—Shandong, Anhui, Henan, Jiangsu, and Hebei—will fully enter the market. With tens of thousands of mu (hectares) of onions waiting to be harvested and sold, the market remains oversupplied, and price increases are unlikely to be sustained.

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📉 Price Trend Chart (May 2025)

(Here you may embed or link to a simple line chart or bar graph showing the drop in onion prices from April to May for red and yellow onions.)

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🛒 Procurement Advice

Given the significant decline in onion prices and current oversupply, now may be a suitable time for short-term buyers or processors to lock in lower procurement costs. However, for long-term buyers, it’s recommended to observe the late May rebound closely before making larger commitments.

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⚠️ Disclaimer

The data provided in this report is sourced from the Shouguang Vegetable Market in Shandong Province and other verified agricultural monitoring platforms. All information is for reference purposes only and does not constitute investment or trading advice.