Wholesalers and retailers in the UAE believed the Indian government's move will create a shortage of the crop and hike its price in the emirates.
There is already a shortage of onions in the domestic market. Hence, wholesale price have gone up, said a wholesale dealer in Dubai's Aweer Market.
The costs have increased to Dh2,203 (USD 599) per tonne now from Dh734 (USD 200) to (210) Dh771 per tonne during April and May this year, said Sunil Kumar K, Manager Abdullah Al Khatal General Trading at Aweer Market.
About 500 tonnes of onions from India are sold daily in Dubai's wholesale market.
The lack of supply from an alternative source, Pakistan, because of a crop failure due to hostile climatic conditions in its producing areas, has worsened the situation.
