India, the global leader in onion exports, has maintained a prohibition on onion exports from last December to the upcoming March due to a significant spike in essential commodity prices. Despite this, India has granted exemptions to several nations based on diplomatic relations, as per the Ministry of External Affairs' recommendations. This special permit facilitates onion exports to Bangladesh, Sri Lanka, Mauritius, Bahrain, Bhutan, and Nepal. However, Maldives finds itself absent from this list, a notable omission given its heavy reliance on Indian onion imports, which constitute nearly 90% of its consumption. The exclusion comes at a time when the existing agreement for discounted food imports from India to Maldives is nearing its expiration in March.
Following the initial announcement of India's export ban, onion prices in Maldives soared, prompting local measures to stabilize the market. Amidst these trade tensions, Maldives has been exploring alternative sources for essential imports, including a new agreement with Turkey to reduce dependence on Indian staples. This move, alongside efforts to diversify import sources for onions, potatoes, and eggs, marks a strategic shift in Maldives' import policies amidst ongoing diplomatic efforts to reassess its military and trade ties with India.
Source: edition.mv