India's high export duty on onions was imposed to mitigate the rising prices of the commodity by curbing domestic supplies, and the government has also started releasing onions from buffer stock.
Indian government on Saturday imposed a 40 percent duty on the export of onions.
The order was issued by the federal finance ministry with the aim to check the price rise and ensure ample supplies of the essential Indian kitchen ingredient in the domestic market.
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| A man buys onion at a vegetable market in Amritsar district of India's northern Punjab state, on September 13, 2022. (Xinhua/Stringer) |
As per the notification, export duty on onions shall come into force with immediate effect and will remain applicable until Dec. 31, 2023.
The decision to impose the 40 percent duty on the export of onions came as prices of the commodity continued to rise in August. Reports said onion prices are likely to increase further the next month.
On Aug. 11, the federal government started releasing onion from its buffer stock to contain the prices. Buffer stock is maintained for price stabilization and to meet any exigencies.
In June, tomato prices in India began to skyrocket. The tomato retail prices across major cities in India remained up to three U.S. dollars a kilo.
Last week, federal finance minister Nirmala Sitharaman told the country's parliament that India has started importing tomatoes from neighboring Nepal.
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