A cargo vessel carrying a shipment of goods for State Trading Organization (STO) has sunk.

RaajjeMV understands that the vessel sank 100 miles out of Maldives waters. It was carrying a shipment of onions from India.

STO’s Communications Director Abdulla Mohamed revealed that the boat does not belong to the company, however, it was delivering the company’s goods.

Mohamed further said that it was carrying 1,500 sacks of onions when it sank, adding that they have yet to determine the cause for this.

There was a price hike in onions recently, with a kilo going for MVR 80, following the Indian government's decision to ban the export of onions last month. However, it resumed export of onion to Maldives shortly after.

India said that the archipelago nation "is an exception" to the regional export ban.