The UAE is gearing up for a welcomed dip in commodity prices as a result of an anticipated boon in production and imports from India, following optimistic forecasts of a robust monsoon season, Khaleej Times reported. India’s pivotal role as a major exporter of various commodities to the UAE, including pulses, spices, rice, and wheat, is poised to bolster trade further, notably under the Comprehensive Economic Partnership Agreement (CEPA).
Skymet, a private weather forecasting agency, recently announced expectations of a normal monsoon in India for 2024, with no looming threat of El Niño. The forecast bodes well for agricultural regions across India, particularly in its southern, western, and north-western parts, including key agricultural hubs like Punjab, Rajasthan, Uttar Pradesh, and Haryana.
India’s decision to permit an additional 10,000 tonnes of onions for export to the UAE, just before Eid Al Fitr, signals a positive trend in commodity availability. Dr. Dhananjay Datar, chairman of Adil Group of Supermarkets, expressed confidence in the quality of the new crop, affirming the Indian government’s move to facilitate exports to key trading partners like the UAE.
Dr. Datar highlighted the favorable conditions across various crops, including rice, pulses, millets, and spices, attributing the positive outlook to the absence of flooding in India. He emphasized that the ample production is likely to translate into lower prices for consumers in the UAE during the summer months.
The Comprehensive Economic Partnership Agreement (CEPA), inked in 2022, further sweetens the deal for UAE consumers, with additional duty discounts on food imports from India.
Kamal Vachani, Group Director and Partner for Al Maya Group, echoed the sentiment of increased imports from the Indian Subcontinent, driven by the anticipated agricultural abundance. Vachani anticipates a surge in imports ranging from staples like rice and flour to a diverse array of spices and lentils, fulfilling the varied demands of UAE residents.
With India’s agricultural sector poised for a fruitful harvest season, consumers in the UAE can anticipate a wide array of fresh produce, including fruits, vegetables, and spices, sourced directly from Indian farms. Vachani emphasized that this increased supply is not only expected to meet local demand but also stimulate export activity to neighboring countries in the region.