Arabia: Saudi Arabia Faces Global Onion Crisis: FSC’s Plan to Ensure Stable Supply

By diversifying imports and encouraging local farming, the FSC aims to minimize the impact of the crisis on consumers and businesses.

The Federation of Saidi Chambers (FSC) assuages fears about a potential onion shortage in the Kingdom, attributing the global surge in prices to disruptions in the supply chain from key exporting nations. Although Saudi Arabia currently relies on imports for 48% of its annual onion consumption, the FSC emphasizes that the domestic market is well-equipped to handle the situation.

Global Onion Crisis: A Supply Chain Conundrum

Onions, a staple in households and professional kitchens worldwide, have become the unlikely protagonists of a global crisis. With major producers facing challenges in cultivation and exportation, onion prices have skyrocketed, leaving consumers and businesses scrambling to adapt.

The situation is particularly evident in Saudi Arabia, where the demand for onions remains high. In 2023, the Kingdom produced approximately 365,000 tons of onions, satisfying 52% of its consumption needs. However, the remaining 48% still relies heavily on imports, primarily sourced from countries now grappling with reduced production levels.

Saudi Arabia’s Response: Encouraging Local Farming and Diversifying Imports

In response to the global onion crisis, the Federation of Saudi Chambers (FSC) is working closely with local authorities to monitor domestic onion production and secure imports from various countries. By diversifying their sources, the FSC aims to minimize the impact of any future disruptions in the global supply chain.

Moreover, the FSC is encouraging local farmers to increase their onion cultivation efforts. A recent study conducted by the food abundance committee and the FSC’s agriculture national committee highlighted the potential benefits of such initiatives. Their findings, based on an evaluation of the effects of an export ban by one country, led to recommendations for monitoring local supply and incentivizing onion cultivation with loans from the Agricultural Development Fund (ADF).

A Promising Outlook: Stable Prices and Sufficient Supply Expected by February

Despite the challenges posed by the global onion crisis, the FSC remains optimistic about the future of the Saudi onion market. With the beginning of local harvests expected in February, the FSC anticipates that onion prices will stabilize and a sufficient supply will be available in the Saudi market.

In the meantime, importers and farmers are advised to diversify their import sources and ensure consistent supply. By taking proactive measures and working together, the Saudi market can overcome the hurdles presented by the global onion crisis and continue to meet the demands of its consumers.

As the world grapples with the complexities of the global onion crisis, the Federation of Saudi Chambers (FSC) remains steadfast in its commitment to safeguarding the interests of local consumers and businesses. Through collaboration, careful planning, and a focus on domestic production, the Kingdom is well-positioned to weather the storm and emerge stronger on the other side.