#Finance

‘Why onions expensive’

By Francis Akinnodi

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Onion sellers have attributed reason for the high cost of the commodity to high demands from exporters and other users.

Market surveys conducted by The Hope revealed that a bag of onion sells between N100,000 and N120,000 depending on the size. However, it was gathered that the price is dropping due to fresh supply from Gada in Niger Republic and other places.

According to an onion seller at Shasha market in Akure, Danladi Umar said one of the reasons behind the scarcity of the commodity is low production during the wet season, coupled with poor storage.

He explained that during the wet season, only Kano and Jigawa states grew the commodity, and as such, the supply couldn’t meet demand.

“Only Kano and Jigawa states produced onions during wet season, and even at that, the issue of poor storage methods didn’t help matters. That is why, at a moment like this you will find out that the commodity is scarce and at a very high cost.”

Another seller, Usman Yusuf, said it was normal in onion value chain to experience scarcity and hike in price during this period due to production calendar.

He added that in few months soon, the price of the commodity will drop.

Similarly, Alhaji Bala Danlarai, said the current issue around onion was perennial due to poor storage facilities.

He added that another issue is that of production calendar, which usually failed to conform with demand and supply chain.

He further explained that  storage has been one of the challenges affecting farmers.

“On many occasions we had to hire poultry houses to store our onions, but for how long can we store in those places? The newly established aerated storage facilities introduced by SAA are not enough.

“To end perennial scarcity, government has to come in and provide us with the needed storage demand. We can produce the country’s annual onion demand but poor storage is our problem,” he added.

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