Onion prices soar to MVR 900 per bag due to low supply

The price of onions has skyrocketed due to a shortage in supply of the vegetable - a staple in Maldivian cuisine - in the local market.

Wholesale traders in the market district of Male’ told Sun on Sunday that they were facing difficulties in securing onion shipments, and that their stocks were running low.

Onions were completely out of stock in some of the wholesale shops.

A sack of onions, previously prices between MVR 200-MVR 350, is now being sold for MVR 500 in some of the shops, and between MVR 800-MVR 900 in many of the shops.

Traders cited the decision by India to ban the export of onions as the main reason for the spike in prices.

“The price is so high because onions aren’t available from India. If we are to maintain the stock without completely running out based on the assumption that we will not get [onions from India], we need to raise the prices,” said one trader.

Maldives is heavily reliant on India for import of essential commodities, including onions.

India has banned the export of onions until the end of March next year, to counter a shortage in onions and keep the prices in check in the domestic market.

However, India has made exemptions for several neighboring countries, including the Maldives, in implementing export controls in the past, and has stated that is open to considering exemptions upon request.

With the ban in India’s onion exports, the stocks of onions currently available in the Maldivian market is from Pakistan, and some from China.

But the expectation of a shortage has also raised the prices of onions from these countries.

In a post on X on Saturday, which appears to have been aimed at alleviating concern after India announced its ban on export of onions, Maldivian Economic Minister Mohamed Saeed said that the Maldives isn’t facing a disruption to the import of any essential commodity.

Saeed said that changes to the global food market or to the export policies of individual countries happen from time to time.

But Maldives’ close trade partners have always prioritized this country, he said.

Saeed added that the establishment of food security remains one of President Dr. Mohamed Muizzu’s top priorities.

He said that the new administration aims at addressing the issue with a “sustainable and holistic solution.”