With India’s onion export ban until March 2024, the UAE faces a sharp surge in onion prices, prompting retail executives to seek alternative sourcing due to a sixfold price hike to meet local demand.
Supply Challenges and Preferred Sources:
Ashok Tulsiani, Al Safeer’s group FMCG director, notes the impact on onion exports, highlighting that while Turkey, Iran, and China are potential alternatives, Indian onions remain customers’ preferred choice due to superior quantity, quality, and price.
India’s Directorate General of Foreign Trade’s prohibition on onion exports, in response to soaring prices (Rs70-80 per kg in New Delhi), has impacted the Subcontinent and Gulf countries, intensifying onion prices across the region.
Seeking Alternative Supply Chains:
Kamal Vachani, Al Maya Group’s group director, acknowledges the UAE’s efforts to diversify onion sourcing channels.
Exploring options like Egypt and Turkey, they aim to ensure consistent onion supply, emphasizing a commitment to market stability and meeting consumer demands amidst supply disruptions.
