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

Published Sep 22, 2023

Tridge summary

Food prices in India have been rising due to the impact of erratic monsoon rains on crops and supply chains, with onion prices alone increasing by 80 percent. In an attempt to control domestic prices, the government has imposed a 40 percent export tax on onions until December 31, which has resulted in a temporary drop in prices. However, with the expectation of a damaged onion crop in Karnataka, prices are expected to rise again in the coming weeks, exacerbating the burden on the Indian household budget.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

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 ...
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