The United Arab Emirates (UAE) is experiencing a significant surge in onion prices following India's announcement of an export ban until March of next year to curb domestic prices. Executives in the retail industry within the UAE are now actively seeking alternative sources to meet the demand, as onion prices have skyrocketed sixfold.
Ashok Tulsiani, the Group FMCG Director at Al Safeer, confirmed the impact on onion exports, leading to a substantial increase in retail prices. He mentioned that while Turkey, Iran, and China are potential alternatives, Indian onions still stand out in terms of quantity, quality, and price. Tulsiani stated that Indian onions remain the preferred choice for most customers, and other countries do not fully meet the demand for Indian onions.
The Directorate General of Foreign Trade (DGFT) in India amended the export policy of onions from free to prohibited until March 31, 2024, in response to the soaring onion rates in New Delhi, reaching Rs70-80 per kg.
India, a major onion exporter to neighbouring countries in the Subcontinent and Gulf regions, has caused a ripple effect, leading to increased prices in those countries due to the export ban imposed by New Delhi.
Kamal Vachani, the Group Director and Partner of Al Maya Group, noted that the ban by the Indian government has prompted the UAE to explore alternative countries to fulfill its onion demand. Egypt is being considered as a potential supplier, and Turkey is emerging as an additional option to source onions for the UAE market. Vachani assured that efforts are underway to expand sourcing networks, ensuring a consistent onion supply for consumers in the UAE, with a commitment to maintaining market stability and meeting consumer demands.
