UAE expects up to 20% drop in onion prices as India resumes exports after a 3-month ban. India halted shipments due to local price rises caused by poor rains and global climate change concerns. Recently, India permitted exports of 64,400 tonnes of onions to the UAE and Bangladesh.
“India’s Ministry of Commerce has notified the export of 14,400 tonnes of onions to the UAE through National Cooperative Exports Ltd (NCEL), with a quarterly quantity ceiling of 3,600 metric tonnes.”
After the Indian ban, onion prices in the UAE surged from an average of Dh1.5-Dh2 per kg to around Dh7-Dh8 per kg. Some retailers even offered weekend promotions selling onions for as low as Dh1 per kg. Consequently, wholesalers and retailers in the UAE sought onions from other countries like Turkey, Iran, and China.
Abdullah Sultan Al Fan Al Shamsi, assistant undersecretary for the monitoring and follow-up sector at the Ministry of Economy, mentioned on Wednesday that the UAE was engaged in discussions with the Indian government regarding this matter.
“During the media briefing, Al Shamsi stated, ‘We have direct communication with them in case we have any challenge in supplies, especially from India.’
“The UAE and India signed a Comprehensive Economic Partnership Agreement (Cepa) a few years ago, which also covers many food items among other industries.
“Dr. Dhananjay Datar, chairman and managing director of Adil Group, commented, ‘Exports will start soon. Prices could go down by up to 20 percent locally once the imports begin.’
“Kamal Vachani, group director and partner of Al Maya Group, highlighted the benefits for consumers, stating, ‘The influx of Indian onions into the UAE market is expected to alleviate pricing pressures, offering consumers a reprieve from inflated costs. This affordability aspect is pivotal, especially considering onions’ ubiquity in numerous culinary traditions across the UAE. Moreover, this development underscores the enduring bonds of cooperation and trade between nations, paving the way for sustained growth and prosperity.'”
