Indian exporters have ceased their shipments to our good neighbour Sri Lanka from May 2022 citing to be the economic crisis. In India hardly any sugar is left to be exported in the current season is the view by Rahul Sheikh ,MD of Meir Commodities . “With the government putting a cap on exporters, chances of exports for this season are slim,” he said. Indian trade has received a backlash due to the present economic and political crisis in Sri Lanka. Sugar,grapes and onions are the major importing products of this coastal region. Many exporters have stepped back since this crisis started while some have stated of their payments not being cleared .
The financial year’s 2022-22 India’s export bill was at a good rate $ 5,208.3 million – a 65 per cent year-on-year growth. Sri Lanka received our major goods such as Engineering goods, skimmed milk powder, sugar, onions, and grapes. Transportation usually takes via sea since it is easily reachable, sending through vessels from ports. Sri Lanka is referred to as an extended market by Kolkatta people. 90% of sugar Sri Lanka consumes per month is from India out of the 40,000 – 50,000 tonnes of sugar. Sri Lanka imported fuel and food using the credit line allowed by RBI. This financial year ‘s export rate is 1.62 lakh tonnes of onions. A leading export import firm dealing in fruits and vegetables is Rainbow International owned by Abhijit Bhasale . He said that many traders who have sent onions are waiting for their shipment payment . “If we compare countries like Bangladesh and Sri Lanka, the former is a more important market for Indian onions than Sri Lanka,” he said. Some have also stopped trading onions.