The increase is a direct result of the price rise in India, says trader

Onion prices from India have shot up by almost 22 per cent during the last one week following a sharp increase in prices in India.

Onions from India were priced at Dh3.20 on Thursday compared to Dh2.70 just a week ago.

The pries of onions have skyrocketed in India increasing by a massive 400 per cent from Rs20 (Dh1.20) to almost Rs80 (Dh4.80).

According to Aneesh Mohammed of Verrani General Trading, one of the major importers of onions into the country, the prices have increased by almost $600 per tonne - CNF Dubai.

“The increase is a direct result of the price rise in India. In fact it has significantly increased over the past few months. Three months ago onions from India were priced at Dh1.20 per kilo,” said Aneesh, referring to the wholesale rates.

Another trader from Kibsons International also referred to a similar price structure and said there could be a further increase in prices.

“The price structure has also affected imports from Pakistan. Indian and Pakistani onions are preferred by the South Asian community in the UAE,” the trader said.

Onion from China is currently selling in the UAE at around Dh2.70 to Dh2.80.

The news of a price hike has resulted in many housewives rushing to their nearest groceries to stock up onions.

Sanju Krishnan says she just went and purchased 25 kilos of onion for Dh2.5 per kilo. “I was afraid the prices could go up to Dh5 or Dh6 per kilo,” she said.

Major supermarkets like Carrefour and Union Co-operative continue to sell onions at around Dh2.50 per kilo.

“Major super markets usually fix the prices from traders and these prices are locked in for a month. A trader is bound to supply the goods at the agreed price structure,” says Aneesh.

According to another trader there could be additional imports from other markets such as China, Iran and even Pakistan in case of shortage from India.

On Wednesday, onion prices in select Indian cities like Delhi, Kolkata, Chandigarh and Patna were hovering around Rs70-Rs 80.