As soon as the news regarding the ban on onion export broke out, an uptick in onion prices was noticed in the Maldives, with price inflations increasing between 20 to 50 percent.
In recurring patterns, global events such as pandemics underscore the critical need for countries to cultivate self-reliance. This imperative became glaringly evident during the COVID-19 pandemic, as borders closed and nations grappled with the prospect of potential disruptions in the importation of essential goods, particularly basic necessities and food.
The Maldives, once characterized by a more self-sufficient approach, has experienced a shift towards heavy reliance on imported goods, including agricultural produce. Despite a history rooted in robust agricultural practices where Maldivian households were self-sustaining through independent farms and lands, this self-sufficiency dwindled with the advent of increased connectivity and international relations, particularly with agricultural nations.
The contemporary landscape reveals a departure from the past, where the majority of households, even in local islands, no longer engage in independent farming practices. This shift signifies a broader trend of diminishing self-reliance in favour of international trade. With this, there is a constant fear of what would happen if a country decides to ban its exports.
Recently, Maldivians were faced with this issue, as news broke out that India was imposing a ban on the export of onion until March 31st, 2024. This became major news in the Maldives, as much like other Asian countries, Maldivian cuisine largely depends on the usage of onions, making it one thing that a household cannot function without. As soon as the news broke out, an uptick in onion prices was noticed in the Maldives, with price inflations increasing between 20 to 50 percent!
Although this is not the first time that India has imposed such a ban, taking similar measures in 2021, there is a constant panic when this kind of news breaks out. When India previously imposed measures that caused panic, the Maldives was one of the countries that was not affected by India’s minimum export price, as the country continued to supply onions to the Maldives as usual. Even so, the news of the ban caused retail prices to hike, with onions now going for the price of MVR 30 to 40 per kilogram.
With this, the Ministry of Economic Development has advised local businesses in the Maldives against hiking the prices as they have confirmed that the Maldives will not be affected by this ban. The Ministry stated that they have held discussions with onion importers to the Maldives who have assured that onions will be imported to the country without any interruptions despite the ongoing ban.
