The culinary landscape of the United Arab Emirates is set to receive a much-welcomed boost as onion prices are anticipated to plummet by as much as 20 percent. This price drop follows India’s decision to resume onion exports to the UAE after a three-month hiatus.
On December 8, 2023, India, recognized as the world’s premier onion exporter, imposed a ban on exports until the end of March 2024. This action was in response to escalating local prices driven by inadequate rainfall in the South Asian nation, amidst broader global climate change challenges.
In a significant development earlier this week, the Indian government authorized the export of 64,400 tonnes of onions to the UAE and Bangladesh. The Ministry of Commerce of India elaborated, “Exports of 14,400 tonnes of onions to the UAE through National Cooperative Exports Ltd (NCEL) are now permitted, with a quarterly cap of 3,600 metric tonnes.”
Since India’s export ban, onion prices in the UAE soared drastically from an average of Dh1.5-Dh2 per kg to Dh7-Dh8 per kg. Retailers, in response to the shortage, had to seek alternative sources like Turkey, Iran, and China, although some promotions saw prices as low as Dh1 per kg during weekends.
Abdullah Sultan Al Fan Al Shamsi, Assistant Undersecretary for the Monitoring and Follow-up Sector at the Ministry of Economy, confirmed ongoing discussions with the Indian government to address the supply challenge. “We maintain direct communication with India to ensure steady supply, especially in light of any challenges that may arise,” Al Shamsi remarked during a media briefing.
The resumption of onion exports from India to the UAE is a testament to the strength of the Comprehensive Economic Partnership Agreement (Cepa) signed between the two nations, which encompasses various food items among other industries.
Dr. Dhananjay Datar, Chairman and Managing Director of Adil Group, conveyed optimism about the impending change. “With the recent announcement of exports resuming, we can expect a local price reduction of up to 20 percent once imports begin,” he stated.
Echoing this sentiment, Kamal Vachani, Group Director and Partner of Al Maya Group, highlighted the broader implications of this development. “The arrival of Indian onions in the UAE market is set to alleviate price inflation, offering financial relief to consumers. This not only speaks to the affordability but also reflects the strong trade and cooperative ties between the UAE and India,” said Vachani.
Further emphasizing the positive impact, Abubakker TP, Director for Abu Dhabi and Al Dhafra region at Lulu Group, noted that onions were previously imported from countries like Turkey and Sudan. “With India lifting the ban, we’re looking at a significant price drop locally,” he concluded.
This turn of events marks a significant relief for UAE consumers, who rely heavily on onions as a staple ingredient in their daily cuisine. The reduction in prices is not just a matter of economic respite but also underscores the interconnectedness and responsiveness of global trade dynamics.
