India imposes higher export duties on onions to stabilize prices in domestic market

Food prices in India have soared in the last two months mostly due to an erratic monsoon. The consumer price index touched 11.5 percent in July. The government has imposed export restrictions on some food items to control domestic prices. After tomatoes, costly onion rates are pinching household budgets of Indians. Erratic rains damaged the crop and disrupted supply chains leading to 80 percent increase in prices. To boost supplies and lower the cost, the government has imposed a 40 percent export duty till 31st December.

Haji Yamin, President of the Onions Traders Association: "As a result of the government imposing 40 percent export duty, onion prices have come down but this is a temporary measure. In the next two weeks we expect the prices to go up again as new crops in the state of Karnataka has been damaged and this will impact the domestic prices."


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