An Echelon Media Company
Monday June 3rd, 2024

Chinese onion becomes cheaper in Sri Lanka than Indian ahead of festivals

ECONOMYNEXT – Price of imported Chinese big onion has been reduced sharply than Indian one in Sri Lankan markets with effect from Tuesday, in a move to provide some relief ahead of the festive season in the island nation battered by an unprecedented economic crisis.

Many Sri Lankans have blamed the government for expensive commodity prices in the country amid an unprecedented rise in the poverty level after the 2022 economic crisis.

President Ranil Wickremesinghe government has been in the process of reducing the prices of essential goods ahead of the festival season. Muslims will celebrate Eid and both Sinhalese and Tamils will celebrate their traditional new year this week.

Wickremesinghe government has been also trying to win people ahead of a presidential election between September 18 and October 18 this year.

An export ban on onions has hit the Sri Lankan consumers with the price of big onion rising as mush as 300 percent in local markets with the domestic onion production was hit by unusual heavy rains in the latter part of 2023.

China entered to big onion market early this month and will sell its big onion at 375 rupees per kilogram at the island nation’s state-owned wholesale and retail chain ‘Lanka Sathosa’ outlets.

Big onions imported from India and Pakistan will be sold at 445 rupees, 70 rupees or 18.7 percent higher than the Chinese, the latest price list announced by Lanka Sathosa showed.

Millions of Sri Lankans have hardly celebrated festivals since Easter Sunday suicide attacks that killed at least 269 people in April 2019 with Covid pandemic and the economic crisis hit the purchasing power of the people.

FAILED ATTEMPTS  

Sri Lanka’s  attempts to secure an exemption from Indian ban on big onion exports failed and that led importers to look into other markets for purchases at lower costs, government officials have said.

India’s onion export ban has led to price spikes in Sri Lanka. India, the world’s biggest exporter of onions, banned shipments on December 8, last year after domestic prices more than doubled in three months following a drop in production.

The move also came as Narendra Modi’s government is trying to woo voters with lower cost of living by making the commodity available in Indian markets at a lower price ahead of parliamentary polls later this month.

The retail price of big onions ranges between Rs. 400-500 a kilo at the moment in Sri Lanka.

Trade Minister Nalin Fernando on March 28 said Sri Lanka will import onions from China.

Related stories
Sri Lanka to import onions from China after India export ban: Minister

Sri Lanka to import Rose Onion amid rising big onion prices

Sri Lanka aims for higher big onion yield next yala season

Sri Lanka grows onions under import tax protection and domestic production is seasonal and imports supplement demand.

3,500 hectares of onions were planted in the 2023 yala (minor cultivation) season, but crops were destroyed by unusually heavy rains before harvesting, the Department of Agriculture said.

Demand remains high ahead of several religious and cultural festivals.

FIRST FUEL, NOW ONION

After fighting for strategic and key infrastructure projects, both China and India are now trying to compete on commodities like onion and fuel, economists say.

China’s state-owned Sinopec is in the process of building a $4.5 billion refinery in Sri Lanka’s deep southern port district of Hambantota, where China has control of the island nation’s largest port.

Sinopec also has been given license for fuel retailing in Sri Lanka. Before the arrival of Sinopec, state-owned Indian Oil Corporation has been enjoying an exorbitant profit in Sri Lanka, analysts say.

India has repeatedly complained to Sri Lankan government over Chinese vessels in Sri Lankan waters citing they were posing security threats to the Indian Ocean.

President Ranil Wickremesinghe’s government in January banned research ships while Beijing has sought approval for one such vessel for research purpose. (Colombo/April 9. 2024)

Comments (1)

Your email address will not be published. Required fields are marked *

  1. Ruchira Kitsiri says:

    The title itself of this news item had me laughing.

    There’s a group of people on a local online forum that I have been frequenting since of late that tries to force people to take a pro-Indian stance, and when failed they blame that Sri Lankans are not grateful enough for India, who extended us an emergency fund facility during the economic crisis.

    They also argue how cheaper it would be to import certaing goods from India like eggs and of course big onions.

    Looks like Chinese are encroaching that space too.

    With apologies to Jaishankar, Bharat it seems no longer matters.

    What can I say, except… Jai ho!

View all comments (1)

Comments (1)

Cancel reply

Your email address will not be published. Required fields are marked *

  1. Ruchira Kitsiri says:

    The title itself of this news item had me laughing.

    There’s a group of people on a local online forum that I have been frequenting since of late that tries to force people to take a pro-Indian stance, and when failed they blame that Sri Lankans are not grateful enough for India, who extended us an emergency fund facility during the economic crisis.

    They also argue how cheaper it would be to import certaing goods from India like eggs and of course big onions.

    Looks like Chinese are encroaching that space too.

    With apologies to Jaishankar, Bharat it seems no longer matters.

    What can I say, except… Jai ho!

Water levels rising in Sri Lanka Kalu, Nilwala river basins: Irrigation Department

Sri Lanka Navy assisting in rescue operations (Pic courtesy SL Navy)

ECONOMYNEXT – Sri Lanka’s Irrigation Department has issued warnings that water levels in the Kalu and Nilwala river basins are rising and major flooding is possible due to the continuous rain. People living in close proximity are advised to take precautions.

“There is a high possibility of slowly increasing prevailing flood lowline areas of Kiriella, Millaniya, Ingiriya, Horana, Dodangoda, Bulathsinhala, Palinda Nuwara and Madurawala D/S divisions of Ratnapura and Kalutara Districts, up to next 48 hours,” it said issuing a warning.

“In addition, flood situation prevailing at upstream lowline areas of Ratnapura district will further be prevailing with a slight decrease.

“The residents and vehicle drivers running through those area are requested to pay high attention in this regard.

“Disaster Management Authorities are requested to take adequate precautions in this regard.”

The island is in the midst of south western monsoon.

DMC reported that 11,864 people belonging to 3,727 families have been affected due to the weather in Rathnapura, Kegalle, Kilinochchi, Jaffna, Mullaitivu, Kalutara, Gampaha, Colombo, Galle, Matara, Hambantota, Puttalam, Kurunegala, Kandy, Nuwara Eliya, Anuradhapura, Polonnaruwa, Badulla, Moneragala, and Trincomalee districts.

Meanwhile, the Meteorology Department stated that showers are expected on most parts of the island today.(Colombo/June3/2024)

Continue Reading

UNP gen secy defends call for postponing Sri Lanka poll, claims opposition silent

The UNP party headquarters in Pitakotte/EconomyNext

ECONOMYNEXT — United National Party (UNP) General Secretary Palitha Range Bandara has defended his call for postponing Sri Lanka’s presidential election by two years, claiming that his proposal was not undemocratic nor unconstitutional.

Speaking to reporters at the UNP headquarters Monday June 03 morning, Bandara also claimed that neither opposition leader Sajith Premadasa nor National People’s Power (NPP) leader Anura Kumara Dissanayake have spoken against his proposal.

“I have made no statement that’s undemocratic. My statement was in line with provisions of the constitution,” the former UNP parliamentarian said.

He quoted Section 86 of Chapter XIII of the constitution which says: “The President may, subject to the provisions of Article 85, submit to the People by Referendum any matter which in the opinion of the President is of national importance.”

Sections 87.1, 87.2 also elaborates on the matter and describes the parliament’s role, said Bandara.

“I spoke of a referendum and parliament’s duty. Neither of this is antidemocratic or unconstitutional. As per the constitution, priority should be given to ensuring people’s right to life,” he said.

“Some parties may be against what I proposed. They may criticse me. But what I ask them is to come to one position as political parties and make a statement on whether they’re ready to continue the ongoing economic programme,” he added.

Bandara claimed that, though thee has been much criticism of his proposal for a postponement of the presidential election, President Wickremesinghe’s rivals Premadasa and Dissanayake have yet to remark on the matter.

“I suggested that [Premadasa] make this proposal in parliament and for [Dissanayake] to second it. But I don’t see that either Premadasa nor Dissanayake is opposed to it. To date, I have not seen nor heard either of them utter a word against this. I believe they have no objection to my proposal which was made for the betterment of the country,” he said. (Colombo/Jun03/2024)

Continue Reading

300 of 100,000 trees in Colombo considered high risk: state minister

ECONOMYNEXT – Trees in Sri Lanka’s capital Colombo are being monitored by the municipal council, Army and Civil Defense Force as the severe weather conditions continue, State Minister for Defense Premitha Bandara Tennakoon said.

“Within the Colombo Municipal Council city limits, there are 100,000 trees. Of these, around 300 are considered high risk,” Tennakoon told reporters at a media conference to raise awareness about the current disaster management situation.

Not all trees required to be cut down he said. “We can trim some of the branches and retain them.”

The problem was that buildings in the vicinity of the tree had cut branches on one side, causing it to become unbalanced, the minister said.

New laws would be brought in so provincial/municipal institutions could strengthen enforcement of building codes.

“We don’t have a single institution that can issue a warning about a tree. Not one to tell us what trees can or cannot be planted near a road.

“Trees should be suitable for the area. Some trees have roots that spread and damage roads, buildings. When the roots can’t go deep, they tend to topple over.

“Now Environment Day is coming up, and anyone can go plant a tree by the road. We have to take a decision about this. We have to enforce laws strongly in future.” (Colombo/June3/2024)

Continue Reading