Good news for onion lovers in the UAE! Prices are expected to drop in the coming weeks after India announced the lifting of its export ban. This move is expected to ease the shortage of onions in the market, bringing relief to consumers who have been paying high prices for the essential commodity.
Background
India had imposed a ban on onion exports in December 2023, which was extended until further notice. However, the Indian government has now lifted the ban, subject to a minimum export price of $550 per tonne.
Impact on UAE Market
Onion prices in the UAE had skyrocketed to over Dh6 per kg after India’s export restrictions, with prices reaching as high as Dh9 per kg. Before the ban, onions were sold for around Dh3-4 per kg, with some supermarkets offering discounts up to Dh2 per kg during weekend promotions.
Retailers’ Reaction
Dr. Dhananjay Datar, chairman of Adil Group of Supermarkets, expects prices to drop but is cautious about forecasting the exact decrease. Kamal Vachani, group director at Al Maya Group UAE, predicts a “significant drop” in prices, which could be further reduced during weekend promotions.
Global Impact
The UAE is one of the largest importers of onions from India, and the lifting of the ban is expected to alleviate the global shortage and impact prices worldwide.
Consumer Advice
Consumers are advised to keep an eye on market fluctuations and take advantage of potential price drops during weekend promotions.
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