The State Trading Organisation (STO) has reduced the price of onions and potatoes ahead of the Islamic month of Ramadan.
The price of onions was lowered from MVR12 to MVR10 per kilo and from MVR250 to MVR220 per bag.
The price of potatoes was lowered from MVR12 per kilo to MVR9 per kilo and from MVR250 to MVR180 per bag.
The price changes took effect today. The state-owned enterprise said it was able to reduce prices as the cost of the next shipment of onions and potatoes had changed favourably.
The price of eggs meanwhile remain unchanged at MVR1.50 per egg and MVR270 per case.
Long queues were reported outside STO shops this week following hikes in the prices of eggs, onions, and potatoes in the market.
The State Trading Organisation (STO) will begin selling its newest onion shipment on Saturday, in an effort to reduce the current high prices for the basic commodity.
According to Miadhu, the STO said that even though the shipment was small, they would continue weekly shipments until prices stabilised.
STO also requested small stores to sell the onions at a set price. Miadhu reported that the STO would keep tabs on these stores and if they did not conform to these prices they would take action against them.
The State Trading Organisation is trying to import more onions and potatoes into the country, in an attempt to bring down the current high prices of these two basic commodities.
But according to Miadhu, the STO might have to look elsewhere than India for onions where a ton of onions currently costs US$950.
However, India does provide letters of credit which enables the STO to purchase these goods without buying foriegn currency.
Managing Director Shahid Ali said that STO aims to sell these goods at affordable rates to retailers.