Like in many Southeast Asian countries, there is currently an onion shortage in Sri Lanka. This shortage is directly related to shortages in India, as Sri Lanka imports a large number of onions from India. In 2018, around 93% of Sri Lanka’s onion imports came from India, the equivalent of 261,5K tons. As a result of low levels of rainfall during monsoon season, as well as unusually heavy rainfall outside of the season, the onion harvest in India has been very low. There is a severe shortage in the Indian market, combined with high prices. Onion exports have been banned and instead, onions are being imported from Turkey and Iran. Sri Lanka suffers as a result of the Indian export ban.
The onion shortage in Sri Lanka has pushed the prices significantly upwards. Onion prices have doubled and are sometimes as high as USD 6 per kg. This trend can be seen in many countries in Southeast Asia, even in Iran and South Korea. As a result, Sri Lanka has placed orders with other major onion exporters, such as Egypt, the Netherlands, and China.
Despite these orders, the Association of Essential Commodities estimates that there will be a shortage until the end of December. The recent imports are already running low and prices for onions from Egypt and the Netherlands are climbing rapidly, up to LKR 150 per kg (USD 0.83). December marks a festival season for Sri Lanka, so the onion shortages are not well-received by the public. Traders are working hard to find more import origins, as well as offering products that could serve as alternatives for onions.
References
- Sri Lankan Government. Onion Statistics.
- MoneyControl. "Onion prices in Asia surge 9-22% as India scouts for imports."
- Reuters. "India banned onion exports. Now Asia has eye-watering prices."
