The Onion Sector in Azerbaijan: A Descriptive Analysis and Links to the Policy Decisions in 2023

Understanding the key trends and dynamics in the agricultural commodities market, especially for onions in developing countries, is critical for informed decision making and strategic planning. Onions are an important crop both domestically and in the global market, with factors such as timing of harvest, distance to market and sales volume influencing pricing. Any government policy decisions regarding onions should take into account not only domestic factors, but also external factors such as trade policy, the market power of middlemen and the global economic situation. Nonetheless, a descriptive but systematic understanding of domestic trends provides a solid understanding of recent developments and future expectations in specific agricultural sectors, particularly from a food security perspective. This working paper provides a descriptive overview of the spatial distribution of Azerbaijan's onion production and productivity between 2000 and 2021 to highlight trends and discuss recent policy decisions. The Azerbaijani case underscores pronounced regional disparities and divergent trends in onion cultivation and productivity. Trade relations have become heavily regulated by the state, accompanied by pertinent policy decisions initiated as of 2023. These developments have occurred concomitantly with the international and geopolitical tensions prevalent in the country. Subsequent investigations should adopt a modeling approach, transcending mere descriptive analyses. This study holds significance for economists and policymakers engaged in the examination of sectoral economics within the realm of agriculture.