Onion prices to drop by 20% as India allows exports after 3-month ban
After a three-month ban, India has resumed onion exports, leading to an anticipated 20% drop in prices in the UAE. The ban, imposed due to domestic price rises following poor rainfall, affected markets globally. However, New Delhi's recent decision to permit exports, including to the UAE and Bangladesh, is expected to alleviate the onion price surge. The Comprehensive Economic Partnership Agreement between the UAE and India, covering various industries including food items, facilitates this trade. With direct communication between the UAE and Indian governments, challenges in onion supply can be addressed promptly. Dr. Dhananjay Datar, Chairman of Adil Group, foresees a significant local price reduction once imports commence, potentially benefitting consumers by up to 20%. Kamal Vachani, Group Director of Al Maya Group, emphasizes the positive impact on affordability and quality, highlighting the significance of onions in UAE's culinary traditions. Abubakker TP, Director for Abu Dhabi and Al Dhafra region at Lulu Group, anticipates a drop in prices as India lifts the ban, indicating a shift from sourcing onions from Turkey and Sudan.
By: Sahiba Suri
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