India’s recent decision to resume onion exports to the UAE following a three-month ban is expected to bring relief to consumers as onion prices in the UAE are projected to drop by up to 20%. The ban, imposed on December 8, 2023, due to local price surges caused by poor rainfall, had led to a significant increase in onion prices in the UAE.
The Ministry of Commerce in India has announced the export of 14,400 tonnes of onions, with a quarterly quantity ceiling of 3,600 metric tonnes, through the National Cooperative Exports Ltd (NCEL) to the UAE. This move follows talks between UAE officials and the Indian government, reflecting the strong trade ties between the two nations, further reinforced by the Comprehensive Economic Partnership Agreement (Cepa) signed a few years ago.
Abdullah Sultan Al Fan Al Shamsi, Assistant Undersecretary for the monitoring and follow-up sector at the Ministry of Economy, highlighted ongoing communications with India to address supply challenges, ensuring a steady flow of essential commodities.
Local business leaders anticipate significant benefits for consumers with the influx of Indian onions, expecting a decrease in prices and an improvement in quality. Dr. Dhananjay Datar, Chairman and Managing Director of Adil Group, predicts a potential 20% decrease in onion prices once imports commence, while Kamal Vachani, Group Director and Partner of Al Maya Group, emphasizes the importance of affordability and quality for consumers, citing onions’ essential role in diverse culinary traditions across the UAE.
Abubakker TP, Director for the Abu Dhabi and Al Dhafra region at Lulu Group, notes that while onions have been sourced from countries like Turkey and Sudan during the ban, the imminent return of Indian onions to the market is expected to further drive down prices, offering relief to consumers amidst recent inflationary pressures.