Onion prices hit the roof in the UAE
India's ban on onion export has had an immediate impact on this essential commodity in the UAE where prices have reached a record high.business Updated: Dec 23, 2010 12:56 IST
India's ban on onion export has had an immediate impact on this essential commodity in the UAE where prices have reached a record high.
As the supply of the highest in demand Indian variety of onion came to a halt, its prices reached Rs 60 per kg compared to the mid-year levels of Rs 20 per kg.
Traders says this is the highest price of onion ever recorded in the UAE.
Local retailers and traders say they are stocking up Pakistani onions to meet the demand even though the same is also presently selling for the same price.
According to them, monsoon season generally throws up supply glitches but with the ban now in place till January, the demand for onion is bound to go up leading to spiralling prices.
Housewives have reportedly been buying in bulk to ensure their delicacies do not suffer from a lack of onions.
Onion prices have, however, been going up gradually since July and August when the prices were stable.
But between September and November it crossed Rs 30 and reached Rs 45 in subsequent weeks.
Now that Pakistan has reportedly begun exporting onions to India there are chances that their procurement will also become costlier for UAE traders.
Besides Pakistani, Egyptian variety of onions is also proving to be an option for buyers.