Sri Lankan crisis hits India’s sugar and onion exports

The ongoing economic and political crisis in Sri Lanka also affected Indian trade. The island nation is the main goal for agri commodities such as sugar, grapes and onions.Since the economic crisis has erupted, most exporters have continued to suspend trade even though some have complained of their payments jammed.The Indian export bill to the island country for the 2021-22 financial year reached $ 5,208.3 million healthy-growing year to 65 percent. Technical items, milk powder, sugar, onion, and grapes are the main exports to Sri Lanka. Given the easy connectivity by sea, Indian exporters usually send their shipments from the port on the ship.

Don’t miss | Street battles in Colombo after Gotabaya escaped in death at nightFor Indian sugar, Sri Lanka is a market that is quite important with exporters call it the extension of the Kolkata market. From 40,000-50,000 tons of sugar consumed by Sri Lanka every month, 90 percent sourced from India.However, since the last three months, especially since the economic crisis began, Indian exporters have stopped their delivery to the country. Rahil Sheikh, Director of Implementing Meir Commodities, said that for the current season there was almost no sugar surplus that was allowed to be exported.

“With the government limiting exporters, export opportunities for this season are slim,” he said.Most of the credit paths allowed by the Reserve Bank of India are used by Sri Lanka to import fuel and foodAnother commodity that since then stopped going to Sri Lanka was Indian onion. For the financial year 2021-22, India exported 1.62 lakh tons of the main kitchen to Sri Lanka. Abhijit Bhasale, owner of Rainbow International – a leading export import company that deals with fruits and vegetables – the word exporter who has sent shipments to Sri Lanka has not received their payments.

“If we compare countries like Bangladesh and Sri Lanka, the first is a more important market for Indian onions than Sri Lanka,” he said. Since the economic crisis has broken, Indian exporters have stopped sending onions to Sri Lanka but as Bhasale said several exporters, who have traded with the country have not received their payments.