India has allowed another 10,000 tonnes of onions to be exported to the UAE which will help bring down prices in the coming days.
The announcement came just days ahead of Eid Al Fitr next week when demand for consumable goods such as onions, other vegetables and spices spike in the country.
Onion prices in the UAE have massively increased of late, reaching over Dh7 per kilogramme. Usually, onions are sold in hypermarkets between Dh2 and Dh3 per kilogramme. During the weekend discounts and promotions, prices are sometimes reduced to Dh1 per kilogramme as well in order to attract customers and increase footfall.
The latest announcement to export 10,000 tonnes of onion to the UAE will come through the National Cooperative Exports Ltd (NCEL), said the Director General of Foreign Trade, which operates under the Ministry of Commerce and Trade in India.
This 10,000 tonnes is in addition to the 14,400 tonnes shipped to the UAE last month. Earlier, New Delhi approved the shipping of 79,150 tonnes of exports to certain countries.
India, one of the world’s largest onion-exporting countries, banned exports of the commodity due to an increase in domestic markets.
Kamal Vachani, group director and partner at Al Maya Group, said this is a very positive development for consumers as this will stabilise prices in the UAE.
“The consumers in the UAE prefer Indian onions for affordability, quality and taste,” he said.
The increased exports of onions come in the wake of the signing of the Comprehensive Economic Partnership Agreement (Cepa) signed between the two countries. The agreement boosts trade and facilitates the trade of vital goods.