India imposes 40% export tax on onions

SGGP August 21, 2023 05:57

The Indian Ministry of Finance has just announced that it will impose a 40% export tax on onions to control prices and ensure supply of this item in the domestic market. The decision is effective until December 31.

India imposes 40% duty on onion exports to control domestic onion prices. Photo: HINDUSTAN TIMES

The Indian Finance Ministry said the tax on onion exports would make the country's onion prices higher than those in Pakistan, China and Egypt, limiting exports and driving down domestic prices. Wholesale onion prices in major markets in India have risen nearly 20% since July to nearly $29 a quintal, amid concerns that erratic rainfall could lead to poor quality and reduced onion production. India is the world's largest onion exporter. Experts say onion prices will continue to rise this month and are likely to rise further in September.

According to the Economic Times, retail inflation in July 2023 in India also increased to its highest level in the past 15 months, from 4.87% in June to 7.44% in July, due to soaring prices of agricultural products and grains.

In a positive development for consumers, tomato prices in India are falling significantly. Wholesale prices of this kitchen staple have fallen by more than 30% at Maharashtra's famous tomato market. Earlier, in the past week, tomato prices at the Pinpalgaon Baswant market in Nashik, Maharashtra, increased sixfold. The average price of tomatoes in the market is now Rs 37 per kg, while a week ago they were as high as Rs 67 per kg.

At that time, many of India's largest fast food chains such as Burger King, McDonald's and Subway simultaneously removed tomatoes from their menus as food prices in this South Asian country rose to their highest level since January 2020. To solve the supply crisis, India started importing tomatoes from Nepal and deployed trucks to distribute this essential item at cheaper prices across the country.

Source: https://www.sggp.org.vn/an-do-ap-thue-xuat-khau-40-voi-hanh-post702384.html