The Economic Ministry has urged businesses not to hike the price of onions to the detriment of the public amid a ban on onion exports by India.
The ministry said in a statement yesterday that it has received complaints from the public about some businesses raising onion prices.
The price of onions doubled in the market in Male' after India banned exports.
India banned the exports of onions until March as a measure to curb inflation ahead of next year's Lok Sabha elections, according to Indian media reports.
The price of onions rose in the Male' market following India's decision. In the middle of the year, a bag of onions cost between MVR 200 and MVR 400. On Sunday, the price of a bag of onions ranged between MVR 550 and MVR 800. The price of onions per kilo was between MVR 30 and MVR 40.
The ministry said it has made three observations after inquiring into the price hikes. Despite India ceasing the export of onions at the moment due to climate conditions, the country has not taken any action that could pose difficulties to the supply of onions from India to the Maldives, the Economic Ministry said.
The ministry has also learned from talks with onion importers that there were no difficulties in bringing onions into the country.
However, a survey of prices charged by 23 businesses showed price increases of 20 percent to 50 percent from November 23 to December 10, the Economic Ministry said in its statement.
The Maldives does not face any difficulty in the import of essential goods, the ministry said, adding that the government would offer solutions if such circumstances arise.
Onions sold in the Maldives mainly come from China, Pakistan and India. The latter is the largest source of onion imports.
A businessman told Adhadhu that the demand in the market was highest for onions imported from India. The price of onions from India has been rising for a while, he said.
Another businessman predicted that onion prices would rise further in the local market in the coming days.
The Indian government has said that onion exports will be allowed on three conditions. Onion consignments loaded before the ban was announced could still be exported.
“Export of onions will also be allowed on the basis of permission granted by the Government of India to other countries based on the request of their Government,” according to the government order issued late on Thursday.
