India imposes 40% export duty on onion to stabilize prices in the domestic market

Updated Sep 22, 2023
Food prices in India have skyrocketed over the past two months, largely due to the erratic monsoon. The consumer price index in July was 11.5%. To control domestic prices, the government imposed export restrictions on certain food products. After tomatoes, the Indian household budget is burdened by expensive onions. Erratic rains damaged crops and disrupted supply chains, causing prices to rise by 80 percent. To maintain adequate supply and reduce the price of the vegetable, the government has imposed an export tax of 40% until December 31.
Haji Yamin, chairman of the Onion Traders Association, notes: “Since the government has imposed a 40 percent export tax, onion prices have dropped, but this is a temporary solution. Over the next two weeks, we expect prices to rise again due ...
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