Onion prices in the UAE are expected to fall in the coming weeks after India announced the lifting of its export ban.
Last year, due to India's restriction on onion exports, onions in UAE hypermarkets were selling for more than Dh6 per kilogram and had peaked at Dh9 per kilogram.
Before India introduced the ban on onion exports, onions in the UAE were usually sold at Dh3-4 per kilogram. Some hypermarkets and hypermarkets would even reduce the price to Dh2 per kilogram during weekend promotions.
UAE retailers said the lifting of the ban would help address the shortage of Indian onions in the market, which is one of the daily consumer goods in Asian and Arab countries.
Dhananjay Datar, chairman of Adil Group of Supermarkets, said onion prices will fall in the future, but it is too early to predict the extent of the decline as the UAE is one of the biggest importers of Indian onions.
However, Kamal Vachani, director and partner of Al Maya Group in the UAE, expects onion prices in the UAE market to fall sharply after the ban is lifted, with weekend promotions likely to lead to a further drop in prices.