India Announces 40% Onion Export Duty
India, the world’s biggest exporter of onions, has imposed a 40 per cent export duty on onions with immediate effect. The additional duty will be in force until December 31 this year.
The UAE is among the biggest markets for Indian onions along with Bangladesh, Nepal, Malaysia and Sri Lanka. The curbs on export have been prompted by the scantest rainfall in a century this month in onion-growing states, which are creating onion shortages in the domestic market.
August is the peak season in India for onion harvesting. Pakistan, China and Egypt are among the other global exporters of onions.
The Ministry of Finance, which imposed the new export duty, wants to contain retail inflation caused by rising prices of vegetables and other food items. This is the second recent effort by the South Asian nation to contain retail inflation caused by food prices.
Last month, the country imposed a ban on non-basmati white rice. It accounts for about 40 per cent of the world’s source of exported rice.
