The price of onions in the Maldivian market has risen to MVR 60 per kilogramme, according to market prices on Sunday. Wholesale outlets report that supplies are running low, with further price increases expected due to ongoing shortages.
Two weeks ago, onions were sold for MVR 25 to MVR 30 per kilogramme, with a 25-kilogramme bag costing around MVR 500. Now, a 25-kilogramme bag has risen to over MVR 900, placing additional strain on consumers and retailers alike.
Wholesalers attribute the price surge to a lack of supply, which has left many outlets unable to meet demand. Analysts predict further increases in commodity prices, as the Maldives faces foreign exchange difficulties. Banks are restricting dollar transactions, forcing businesses to rely on the black market, where rates are at record highs.
Analysts further warn that with no improvement in the foreign exchange situation, the high black market rates are expected to persist, potentially driving up the prices of other essential goods in the near future.
