Onion prices in the United Arab Emirates (UAE) have soared multiple times after the main supplier, India, banned exports.
The price jumped from AED 3 ($0.82) per kilo in January to AED 4.95 ($1.33) a kilo in December 2023. The rate for imported white onions, on the other hand, is around AED 7.95 ($2.16) per kg at local supermarkets.
This price surge echoes that of December 2010 when a kilo of red onions had also edged to AED 4.95.
UAE is now seeking regional alternatives for supplies despite the fact that India’s onions are the favourite in the country. The subcontinent has always provided high quality and equally impressive quantity for its onion shipments into the UAE. Alternative sources could include Turkey and Egypt, though the latter faces its own onion crisis, with an export ban in place.
Another traditional source, Pakistan, also espouses a similar onion shortage and has also enforced measures to curb exports.
Even if Dubai-based traders were to rely on traditional suppliers from India, they’d have to surmount the export price challenge. India not only enforced a ban until end March, 2024, but also raised the minimum export price (MEP). This means shippers have to charge $800 (AED 2,938) per ton to ship onions out of New Delhi.
Traditionally, prices of onions have been generally quite affordable for UAE residents due to a low inflation of 6.5%. In normal times, onions are usually 50% cheaper in the UAE in comparison with the United States, which also enjoys near-similar inflation.
For now, however, locals have seen a surge of as much as 6 times in onion costs across Dubai and Abu Dhabi. Some premium outlets are even charging up to AED 17 ($4.63) per kg for onions and leek mixtures.
Despite this shortage, the UAE remains one of the world’s biggest importers of onions. In 2021, the country shipped home $165 million (AED 605.9 million) worth of onions and became the 13th largest importer. In the same year, it was the 21st biggest exporter of onions, shipping $48.5 million (AED 178.1 million) worth.
Thus, in the current onion price surge context, the UAE still remains a major global player in onion trade.