Onion prices to surge on India’s export ban
View(s):Prices of onions are likely to go up by about 20 per cent in the wake of the Indian ban on exports of the commodity since last Monday.
Sri Lanka’s onion prices as a result will go up as importers will have to shift purchases from India to Pakistan, Egypt, China and Holland, Importers and Traders Association of Essential Food Commodities President G. Rajendran told the Business Times on Wednesday.
At present Sri Lanka imports about 10,000 MT of onions from India which is cheaper in price and is faster to access as it takes only three days to import it.
Mr. Rajendran noted there will be an impact on the prices since the demand could increase for onion stocks from these markets by other importing nations.
“If there is a major supply to other countries and if all are going to buy from these markets it (prices) could go up by about US$100-200 (per ton),” he said.
Importers have met Trade Minister Bandula Gunawardena and apprised him of the situation and requested to allow them to sell above the controlled price.
Indian onions are exported at $350 per MT but Pakistan sells at about $475-500.
Importers have already commenced buying onion stocks from Pakistan due to the sudden imposition of the ban from India.
Heavy rains have damaged crops and onion prices in India had trebled within a month as a result of which authorities banned exports of the commodity with immediate effect from Monday. (SD)