Maldives Excluded from Indian Onion Export Permit List

The Maldives, which heavily relies on Indian onion imports, faces potential supply disruptions and price increases after being excluded from India’s list of countries granted special export permits.

India, renowned as the largest global exporter of onions, imposed an export ban last December due to soaring prices of essential commodities, effective until next March.

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Despite this restriction, the Indian Ministry of External Affairs advised issuing special permits to select neighbouring nations, fostering bilateral relations. Bangladesh, Sri Lanka, Mauritius, Bahrain, Bhutan, and Nepal are among the countries included in this special permit list, as per reports from Indian news outlets. However, Maldives does not feature on this roster.

Maldives heavily relies on India for approximately 90 percent of its onion imports. Compounding the situation, the existing agreement with India, facilitating the import of food items, including onions, at reduced prices, is set to expire this March.

The Ministry of Foreign Affairs has yet to provide any official statement on this matter.

Previously, when news initially broke of India’s onion export ban, the Maldivian market witnessed a significant spike in onion prices, escalating from MVR 400 to over MVR 700 per sack. To mitigate the impact, the State Trading Organization (STO) imported a consignment of onions to stabilise prices temporarily.

Tensions persist between India and Maldives, with the government actively seeking the withdrawal of Indian military presence from the region. 

In January, Muizzu unveiled plans to reduce the Maldives’ dependency on India for staple foods. A partnership with Turkey was announced to diversify food imports, including onions, potatoes, and eggs, from alternative sources.