UAE: Will onion prices decrease as India lifts ban on exports?

UAE: Will onion prices decrease as India lifts ban on exports?

India's decision is expected to increase the availability of onions in the uae market. — File photo

Published: Mon 6 May 2024, 6:00 AM

Onion prices in the UAE are expected to drop in the coming weeks after India announced lifting a ban on the exports. Vendors in the UAE are hoping that India’s decision will ease shortage of the commodity in the market.

Onion has been selling at over Dh6 per kg in the local hypermarkets after India put restrictions on exports last year. The prices had risen to as high as Dh9 per kg, but then India permitted exports to the UAE, which helped bring down the prices to Dh6.

Before India’s export curbs, onion was usually sold for around Dh3-4 per kg. Some hypermarkets and major supermarkets even used to reduce the price up to Dh2 per kg during the weekend promotions.

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In December, India banned exports of onions till March 31, 2024, which was later extended till further order. However, New Delhi allowed exports to some countries based on their requests.

Later, Indian government lifted the ban subject to a minimum export price of $550 per tonne as compared