Onion prices in the UAE are expected to drop in the coming weeks as India has lifted the ban on exports. This move is anticipated to increase the availability of onions in the UAE market and help ease the shortage of the commodity. The prices of onions had skyrocketed in the UAE, reaching as high as Dh9 per kg, after India restricted exports last year. However, following India’s decision to allow exports to the UAE, the prices have dropped to around Dh6 per kg.
Prior to the export restrictions, onions were commonly sold for around Dh3-4 per kg in the UAE. Some hypermarkets and supermarkets even offered weekend promotions with prices as low as Dh2 per kg. The ban on exports was initially set by India in December and extended till further notice, but several countries including the UAE were allowed to import onions based on their requests. The ban was later lifted by the Indian government with a minimum export price of $550 per tonne.
Dr. Dhananjay Datar, chairman and managing director of Adil Group of Supermarkets, expects the prices of onions to drop with the removal of the export ban, although it is too early to predict how much the prices will decrease. The UAE is one of the largest importers of onions from India, and Kamal Vachani, group director and partner at Al Maya Group UAE, anticipates a significant drop in onion prices in the UAE market following the lifting of the ban. Vachani also mentioned that India’s decision is likely to alleviate the shortage of onions and impact prices globally.
Consumers are advised to stay informed about potential market fluctuations, especially during weekend promotions where prices may drop further. The decision by India, as one of the largest onion producers in the world, is expected to have a positive effect on the availability and pricing of onions in the UAE market. retailers are hopeful that the increased supply of Indian onions will help meet the demand and stabilize prices in the coming weeks. With the ban on onion exports lifted, the UAE market is likely to see a more consistent and affordable supply of this essential commodity.
