Foreign Ministry says India will continue to supply the Maldives with onions despite the country itself halting the export of the onion due to a shortage there.

The Ministry said although India had halted the export of onions, it would continue to supply the Maldives under the quota it had renewed last month as part of a special permit. The Ministry assured that there would be no shortages of onions in the Maldivian market.

The Indian government banned the export of all varieties of onions with immediate effect yesterday after the prices of the bulb in the Indian market soared in recent weeks.

Indian media reports said that that this came even as the government is set bringing laws in Parliament to remove all stockholding and movement restrictions on farm produce.

The reports said that the recent appreciation of prices is mainly due to heavy August rain destroying the onion crop of north Karnataka, which was supposed to hit the market early September.