Onions and shallots market in Iran

Earlier Report Observations

From 2018 to 2021, Iran's production of fresh or chilled onions and shallots increased from 1 518 thousand tons to 2 366 thousand tons, while the domestic market volume grew from 1 175 thousand tons to 1 993 thousand tons. This expansion was supported by the state's dominant role in the agricultural economy, which provided stability, and by environmental factors such as temperature and day length that positively affected crop yields. In 2019, price controls enforced by the fruit and vegetable traders' union helped limit speculative price hikes, contributing to market predictability.

The market shifted in 2022 when production fell to 1 925 thousand tons and the domestic market volume dropped sharply to 1 447 thousand tons. This contraction was primarily driven by the Ministry of Agricultural Jihad lifting the export ban, which redirected significant volumes abroad. The market also experienced a production surplus that year, affecting price levels. In 2023, production recovered to 2 016 thousand tons and the market volume rose to 1 575 thousand tons, even as high inflation, exchange rate fluctuations, and a depreciating rial led to a notable 30% increase in consumer prices.

Production onions and shallots in Iran

In kind, 2017-2020, K t

From 2017 to 2020, Iran ranked as the world's 8th largest producer of onions and shallots.

Top producers of onions and shallots, 2017-2020

World map of production of onions and shallots, 2017-2020

Iran's production of onions and shallots grew for the second year in a row. In 2020, the country produced 2 128 thousand tonnes, marking a steady increase of 7.4% over the previous year. Over the 2017-2020 period, production rose by 25.1%, with an average annual growth rate of 7.7%. The lowest production level was recorded in 2018 at 1 518 thousand tonnes, which represented the largest decline of 10.8% that year. In contrast, 2019 saw the biggest increase, with production jumping by 30.5%.

Annual dynamics of production in Iran in kind, 2017-2020, K t

In value, 2017-2020, M $ US

In 2020, the value of Iran's onions and shallots output reached 597.1 million US dollars, up 10.8% from the year before. Between 2017 and 2020, production value increased by 24%, translating to an annualized growth rate of 7.4%. The largest decline occurred in 2019, with a drop of 2.5%, while the largest increase was in 2018, when value rose by 14.7%.

Annual dynamics of production in Iran in value, 2017-2020, M $ US

Exports onions and shallots from Iran

Exports in kind, K t

Iran's exports of onions and shallots expanded for the third consecutive year. In 2020, the country exported 492.8 thousand tonnes, showing a robust increase of 23.3% compared to the previous year. From 2017 to 2020, export volumes surged by 257.5%, which corresponds to an average annual growth rate of 52.9%.

Annual dynamics of product's exports from Iran in kind, 2017-2020, K t

From 2017 to 2020, the main destinations for Iran's onions and shallots exports were Iraq, accounting for 67.7% of export volume, the United Arab Emirates with 12.0%, and Afghanistan at 4.4%. Together, these three countries represented 84.1% of Iran's total export volume in this category.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Iran in kind, 2017-2020

Exports in value, M $ US

The market exhibited significant volatility during this period. The lowest export value was recorded in 2017, while the highest was in 2020, with a 3.5-fold difference between these years. In 2020, the value of onions and shallots leaving Iran amounted to 138.3 million US dollars, up 27.2% year-over-year. The largest decline occurred in 2019, with a drop of 12.9%, whereas the largest increase was in 2018, when value soared by 219.7%.

Annual dynamics of product's exports from Iran in value, 2017-2020, M $ US

Throughout 2017-2020, Iraq was the leading market for Iran's onions and shallots in value terms, representing 68.4% of exports, followed by the United Arab Emirates at 11.3%, and Kuwait with 4.1%. Collectively, these three countries accounted for 83.9% of the total export value.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Iran in value, 2017-2020

Imports onions and shallots to Iran

According to market research, Iran did not import any onions and shallots from 2017 to 2020.