Onion imports face no challenge, Ministry requests maintaining price

Ministry of Economic Development has cautioned local businesses and vendors against hiking prices of onions since Maldives is not challenged in importing the commodity from India.

The ministry in a statement released on Sunday evening, December 10, said it had received public complaints of some local businesses hiking onion prices.

Although India has restricted exports of onion due to seasonal conditions limiting fresh harvests, the ministry reports that the Indian government has not taken any measures to the detriment of Maldives.

"Through the discussions the ministry held with onion importers to the Maldives, they have assured that the commodity will be imported without interruptions," the Ministry affirmed.

According to a survey conducted by the ministry involving 23 local businesses, the authority has identified a price inflation of onions ranging between 20 to 50 percent from November 23 to the present date.

The ministry further assured that the government would provide an adequate solution in case onion imports faced any further challenges.

Currently onions are sold between MVR 30 to 40 per kilogram.

Earlier on Saturday, December 9, Minister of Economic Development Mohamed Saeed assured there were no obstacles to import general goods.

The minister's statement have come following India's decision to temporarily cease all exports of onions.

Several Indian newspapers report that this decision was aimed at reducing the country's inflation, expected to rise for the Lok Sabha (House of the People) elections of the Indian parliament next year.

However, the Ministry of Foreign Trade of India said that all consignments for which payments have already been settled, or ready to be shipped or shipped, and consignments registered on the system will be processed, with consignments dispatched from India before January 5, 2024.

Indian media reports also noted that although the government decided to temporarily cease onion exports, it would permit the export of the commodity if requested by the government of any country that is a regular importer.

On previous occasions when India halted onion exports to other countries, it consistently made exceptions for the Maldives, ensuring uninterrupted exports to the country.