Onion shortage in India drives Maldives prices to MVR 5 per kg
Approximately two days ago, a 25 kg sack of onions was available for purchase at MVR 225. However, the price has surged to MVR 350, a rise of MVR 5 per kilogram.
Male: Due to the challenge in procuring onions from India persists as onion prices surge in the Indian market, the cost of onions in Maldives has also increased.
Approximately two days ago, a 25 kg sack of onions was available for purchase at MVR 225. However, the price has surged to MVR 350, a rise of MVR 5 per kilogram.
Entrepreneurs said that this drastic price hike can be attributed to the supply shortage of onions in India, leading elevated pricing there as well.
In an effort to address the onion crisis, India has implemented a substantial increase in onion export duties, raising them to 40 percent. However, Minister of Economic Development Fayyaz Ismail said that the surge in onion prices within Maldives is not linked to the escalated export duty. He further assured that the price dynamics in Maldives would remain unaffected, as onions are imported under a special tariff arrangement.
Mihaaru News reported that onion prices have been raised by exporters due to a scarcity of onions in India. As one of the leading global exporters of onions, India is currently grappling with a shortage, leading to the price hike as a strategy to address the supply deficit.
Ajit Shah, an onion exporter, told Reuters that as a result of this development, India’s onion export prices will now surpass those of Pakistan, China, and Egypt. He said that this adjustment might prompt other nations to shift their onion purchases away from India to alternative exporting countries.
Wholesale export prices of onions have risen by 20 percent from July to August. Cuurently, a sack of 100 kg onions from India is priced at USD 28.87 (equivalent to MVR 444).
The onion production in India has decreased due to the impacts of climate change.
According to a Mumbai-based onion exporter, onions harvested during the summer season spoil at a faster rate. Additionally, there are significant delays in the supply of onions.
During the first six months of the current fiscal year, India exported a total of 1.46 million tonnes of onions. Besides Maldives, India also supplies onions to countries including Bangladesh, Nepal, Malaysia, the UAE, and Sri Lanka.
