UAE: When India lifts its export ban, will onion prices drop?

In the UAE, a glimmer of hope emerges for consumers as the specter of soaring onion prices may soon be alleviated following India's recent decision to lift its ban on exports. This move is anticipated to usher in a period of relief for vendors and shoppers alike, potentially easing the shortage of this essential commodity in the local market.

Over the past year, onion prices in the UAE have skyrocketed, reaching exorbitant levels of over Dh6 per kilogram, and at times soaring to as high as Dh9 per kilogram, due to India's imposition of export restrictions. However, with India now permitting exports to the UAE, prices have already begun to see a decline, settling at Dh6 per kilogram in local hypermarkets.

Prior to the export curbs imposed by India, onions were typically available in the UAE market for a much more affordable price range of Dh3-4 per kilogram, with some retailers even offering promotional discounts as low as Dh2 per kilogram during weekend sales.

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India's ban on onion exports, initially slated until March 31, 2024, and later extended indefinitely, had exacerbated the shortage in the UAE market. However, the recent decision by the Indian government to lift the ban, albeit subject to a minimum export price of $550 per tonne, is expected to provide much-needed relief to retailers and consumers alike.

Dr. Dhananjay Datar, chairman and managing director of Adil Group of Supermarkets, cautiously anticipates a drop in prices but refrains from making definitive predictions on the extent of the decrease. Meanwhile, Kamal Vachani, group director and partner at Al Maya Group UAE, foresees a significant reduction in onion prices in the local market, attributing this optimism to India's status as one of the world's largest onion producers.

As consumers eagerly await the anticipated relief in onion prices, market observers advise vigilance amidst potential fluctuations. However, with the prospect of India's onions once again gracing the shelves of UAE supermarkets, hopes are high for a return to more affordable prices, offering respite to shoppers and retailers alike.

May 6, 2024 11 a.m. 6584

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