India imposes 40% export duty on onions to calm rising prices
Source: Reuters
India imposes 40% export duty on onions to calm rising prices
Rajendra Jadhav
Updated Sat, August 19, 2023 at 11:37 AM EDT·2 min read
MUMBAI (Reuters) -India will impose with immediate effect a 40% export duty on onions up to Dec. 31 in an attempt to improve domestic availability of the vegetable, the ministry of finance said in a notification on Saturday.
The duty imposed by the world's biggest exporter of onions will help New Delhi dampen local prices ahead of key state elections later this year but will force Asian buyers to shell out more, as other regional exporters have limited supplies.
"The export duty will make Indian onions more expensive than those from Pakistan, China, and Egypt. This will naturally lead to lower exports and aid in reducing local prices," said Ajit Shah, an exporter based in Mumbai.
Average wholesale onion price in key markets has jumped nearly 20% from July to August, to 2,400 rupees ($28.87) per 100 kg on concerns that erratic rainfall would lead to lower yields.
India is heading for its driest August in more than a century, ...
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Read more: https://news.yahoo.com/india-imposes-40-export-duty-135004206.html
Original Reuters article (paywall): https://www.reuters.com/world/india/india-imposes-40-export-duty-onions-with-immediate-effect-2023-08-19/
