g weeks.
The decision comes after months of restricted trade, which saw onion prices soar in local markets.
Following India’s imposition of export curbs last year, onion prices in the UAE skyrocketed, reaching an alarming high of Dh9 per kilogram in some instances. The scarcity was exacerbated by India’s December ban extension till March 31, 2024, further straining the supply chain.
However, with India’s recent policy shift, permitting exports to the UAE and other countries, retailers and vendors are optimistic about a reversal of the price surge.
Dr. Dhananjay Datar, chairman and managing director of Adil Group of Supermarkets, commented that while a price drop is imminent, it’s premature to gauge the extent of the decrease.
The UAE, being one of the largest importers of onions from India, stands to benefit significantly from this development. Kamal Vachani, group director and partner at Al Maya Group UAE, anticipates a “significant drop” in onion prices, attributing it to India’s status as one of the world’s leading onion producers.
The removal of export restrictions is expected to address the shortage of Indian onions in the UAE market, a commodity widely consumed among Asian and Arab nationals. Retailers emphasize the importance of staying vigilant amidst potential market fluctuations while also hinting at the likelihood of further price reductions during weekend promotions.
Before the export curbs, onions were typically priced between Dh3-4 per kilogram, with occasional promotions offering prices as low as Dh2 per kilogram. The recent export ban had disrupted this market dynamic, leading to inflated prices and concerns among consumers.
India’s decision to lift the ban, albeit with a minimum export price of $550 per tonne, signals a shift towards normalizing onion trade globally. This move not only addresses the immediate concerns of scarcity but also underscores the interconnectedness of international markets in ensuring food security.
While consumers eagerly await the anticipated drop in prices, stakeholders in the UAE’s retail sector remain cautiously optimistic. The impact of India’s policy reversal is expected to reverberate across the globe, providing much-needed relief to consumers grappling with inflated onion prices.
As the market adjusts to the resumption of onion exports from India, observers anticipate a return to more stable pricing levels, signaling a positive outlook for both retailers and consumers alike.
In conclusion, India’s decision to lift the onion export ban heralds a new era of stability in the UAE’s onion market, offering hope for consumers and retailers alike. With prices expected to plummet in the coming weeks, the stage is set for a much-needed reprieve from the recent surge in onion prices.