Onion Prices Surge to MVR 900 Amid Supply Shortage

In a significant market development, the Maldives is experiencing a surge in onion prices, reaching an alarming MVR 900 per bag, driven by a severe shortage in the local supply chain. Wholesale traders in Male’, the bustling market district, revealed their struggles to secure onion shipments, leading to dwindling stocks and an unprecedented spike in prices.
Once priced between MVR 200 and MVR 350, a sack of onions is now being sold for MVR 500 in some shops, with prices soaring to a staggering MVR 800 to MVR 900 in many others. The primary cause attributed to this surge is India's decision to ban onion exports, a move aimed at stabilizing domestic prices amid a shortage.
Maldives heavily relies on India for essential commodities, including onions. While India has implemented an export ban until March next year, exemptions have been made for neighboring countries, including the Maldives, based on past requests. However, the current spike in prices is a result of insufficient supply even from exempted countries.

The available onion stocks in the Maldivian market are now sourced from Pakistan and, to a lesser extent, China. Despite this, prices continue to rise due to the expectation of a shortage from these alternative sources as well.
Economic Minister Mohamed Saeed addressed concerns, stating that the Maldives remains committed to ensuring a stable supply of essential commodities. While acknowledging global market fluctuations and individual countries' export policies, he assured that the government is working on a sustainable and holistic solution.
President Dr. Mohamed Muizzu's administration prioritizes food security, and Minister Saeed emphasized that the country's close trade partners continue to prioritize the Maldives. The economic team is actively addressing the situation with a long-term perspective to establish a resilient solution to the onion supply challenge. As the government strategizes for a sustainable remedy, consumers and businesses remain vigilant amid the fluctuating onion market.