Mint Explainer: Why has India imposed 40% export duty on onions?
- Inflation in onion prices, which had remained negative since September 2021, shot up to 11.72% in July
The government on Saturday imposed a 40% export duty on onions to improve domestic supplies and tame inflation during the upcoming festive season. The export duty will be in effect until December. The export duty on onions has been imposed for the first time amid a trend of “exceptionally high exports" this year. In 2019 the union government had fixed a minimum export price for onions, and in 2020 it had banned onion exports during September-December. Mint explains why India has imposed a 40% export duty on onions.