Onion Prices Surge in UAE Following India’s Export Ban
Published on: December 15, 2023.
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UAE Seeks Alternative Onion Suppliers as India Implements Export Ban
The United Arab Emirates (UAE) is experiencing a significant increase in onion prices following India’s decision to ban onion exports until March of next year. This export ban was imposed by India in an effort to control local prices. As a result, the retail industry in the UAE is now looking for alternative sources to meet the demand for this commodity as prices have risen six-fold.
Ashok Tulsiani, the Group FMCG Director at Al Safeer, confirmed that the ban on onion exports has had a direct impact on prices, causing them to increase by a factor of at least six. While countries like Turkey, Iran, and China are potential alternatives for onion sourcing, Tulsiani stated that Indian onions are still preferred by most customers due to their superior quantity, quality, and price.
The Directorate General of Foreign Trade (DGFT) in India amended the export policy of onions, changing its status from “free” to “prohibited” until March 31, 2024, as a response to rising onion rates in New Delhi, which reached Rs70-80 per kg.
This export ban by India not only affects domestic prices but also impacts other neighboring countries in the Subcontinent as well as the Gulf countries, leading to a surge in onion prices in those regions.
In response to the ban, the UAE has begun diversifying its sourcing channels for onions and is exploring other countries to meet the demand in its market. Egypt and Turkey have emerged as potential alternative suppliers of onions for the UAE. Kamal Vachani, the Group Director and Partner of Al Maya Group, stated that efforts are being made to expand sourcing networks to ensure a consistent onion supply for consumers in the UAE. The goal is to maintain market stability and meet consumer demands.
As the UAE looks for alternative onion suppliers, it remains to be seen how the market will adapt to the changing dynamics of the onion trade. However, efforts are being made to secure a stable supply and mitigate the impact of the Indian export ban.
Source: [Khaleej Times](https://www.khaleejtimes.com)
