STO imports onion shipments, sells at controlled rate

State Trading Organization (STO) has begun importing shipments of onions and selling it to wholesalers with the stipulation that they sell it at a controlled rate, in a bid to control the rate of onions which has skyrocketed in the Maldives market in recent weeks.

The rise in rate of onions – a staple in Maldivian cuisine – is attributed to the decision by India to ban the export of onions.

A sack of onions, previously available in the market for MVR 350, has risen to MVR 850-MVR 900.

STO said it had begun importing shipments of onions to stabilize the rate.

The company said it has brough in its first shipment of 4,500 sacks of onions, and is selling it to wholesalers under the condition that they maintain the maximum sale price at MVR 20 per kilo.

“As STO’s aim is to stabilize the market, the company will continue to supply the onions needed by the Maldivian market until the onion shortage is resolved and the market rate is under control,” said STO, in a statement on Sunday.

Onions, like potato and eggs, are a staple in Maldivian cuisine. Businesses are already preparing for the upcoming Ramadan, a month which traditionally sees a rise in consumption of such products.