Govt imposes 40 pc export duty on onions to contain rising prices
New Delhi, August 20 : Seeking to ensure adequate supply of onions in the domestic market and keep prices in check, the government has imposed a 40% export duty on onions with immediate effect. The higher duty will remain in place till December 2023.
The notification issued today raising the export duty on onions said that the decision was necessitated in public interest. “This notification shall come into force with immediate effect, and will remain in force up to and inclusive of the 31st December, 2023,” it said.
The prices of onions in local markets have been on rise in recent weeks burning a hole in household budgets. High prices of vegetables last month pushed inflation to 7.44%. The July inflation number is way above the Reserve Bank of India’s upper tolerance band of 6%.
“The steep rise in food inflation to 11.5% in July from 4.5% in June and 3% in May is due to accelerating inflation in vegetables, cereals, pulses, spices, and milk. This is the highest rate of food inflation since April 2020,” research and rating firm Crisil said in a note recently.
Recently, tomato prices had surged to Rs 250-300 a kilo in many parts of the country. It has cooled down in the last few days but still remains high at Rs 70-100 a kg.
