The MoFAWR is actively working on ramping local onion production amidst volatile market trends

An official from The Ministry of Agriculture, Fisheries, and Water Resources unveiled that the Ministry is in the process of signing a new agreement for the production of onions over an area of 621 acres last week.

Speaking to the Observer, Director General of Marketing in Agriculture and Fisheries, Dr. Masoud al Azri, highlighted the significance of increasing local onion production, “Recently, as you may know, some countries have imposed bans on the export of onions, and Oman has been among the countries affected since we import large quantities of onions. Our current domestic onion production only covers about 11% of our consumption, so we need to import large quantities worth millions of rials. As a result, there has been a move to cultivate this crop within the Sultanate to enhance self-sufficiency and reduce imports of this product.” Last week, the Ministry signed an agreement for the project with an annual production of 700 tonnes of onions in the Wilayat of Dhank in Al Dhahirah Governorate. Al Azri shed some insight on the project’s status, "The Dhank Agricultural Production project, which we mentioned earlier, has already begun by digging wells, and they are now in the process of preparing the land for cultivation. They have also purchased all the necessary supplies for this major project. We hope that it will supply the market with local production and significantly increase the self-sufficiency rate once commercial production begins." Furthermore, the official revealed that an upcoming agreement is in progress between the project and Nakheel Development Oman for the purchase and marketing of the crops.

According to data provided by MoAWFR, 86 per cent of the annual onion supply is imported at a volume of 91,320 tonnes of onions per year. Only 14 per cent of onions are grown locally (14,866 tonnes per year).

Earlier this year, the price of red onions rose by 300 per cent amidst a months-long suspension of onion exports from India—which stands at volume of 43,000 tonnes per year and accounts for 44 per cent of total onion imports into Oman.

The prices rose from 0.140 baisas per kilo in 2023 to 0.600 baisas per kilo by mid-February 2024.

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