India's suspension of onion export to UAE might result in price-hike

Dubai, Oct 8 (UNI) India's decision of suspending fresh exports of onions might result in soaring prices of the red bulb in the UAE ahead of Eid.

There was already a shortage of onions in the UAE market and now the wholesale prices had gone up, said a wholesale dealer in Dubai's Aweer Market.

About 500 tonnes of the vegetable from India used to be sold daily in the market.

The lack of supply from Pakistan due to crop failure worsened the situation.

The National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) termed it a temporary suspension due to heavy rains in the onion producing states, Gulf News reported The situation was expected to be normal by the middle of this month when crops from the seasonal harvest reached the market, Gulf News quoted NAFED spokesperson as saying.

Major retail outlets claimed that the temporary phenomenon would not affect the prices immediately and steps had been taken to retain the regular supply.

So far, the prices have not been increased but future prices could not be predicted if an acute shortage gripped the market.

UNI