State Trading Organization (STO) has started importing and wholesaling onions to control the prices in the market.
Onion prices have soared after India announced a temporary suspension of onion exports. Onions sold in the Maldives mainly come from China, Pakistan and India. The latter is the largest source of onion imports.
In the middle of the year, a bag of onions cost between MVR 200 and MVR 400. Last week, the price of a bag of onions rose to MVR 800.
STO said in a statement today that the company had received complaints about the increase in the price of onions.
One of the main reasons for the formation of STO is to ensure food security and the company has taken measures to bring down prices, the statement read.
STO has started importing onions to control the price of onions in the market and ensure the availability of stocks.
The first shipment of 4,500 bags of onions from India has now been imported and opened for sale to wholesalers, the statement noted.
The imported onion will be sold to the public by retailers and the businesses will be advised and conditioned not to exceed the price fixed by STO.
The company has advised retailers to ensure that the price for a kilo of onion does not rise above MVR 20.
STO said it aims to stabilize the market and will continue to supply onion until the shortage problem is resolved and the market price is controlled.
