Importers of consumer goods say that supplying the demand for onions in the domestic market is becoming a serious crisis as India has extended the ban on onion exports till March next year.
The Indian government has taken this decision to increase the availability of onion in the Indian market and to control the price. But market sources say that this decision will create a severe shortage of onions in the Sri Lankan market during the festive season.
A spokesperson for the Association of Essential Food Importers told our website that importers are still trying to find alternative suppliers. Sri Lanka imports about 20,000 tonnes of onion per month. Up to 300 rupees per kilo of onion in the local retail market has now risen.