By Krishnan Nayar
NEW DELHI, 19th August, 2023 (WAM) — India, the world’s biggest exporter of onions, has imposed a 40 percent export duty on onions with immediate effect. The additional duty will be in force until 31st December 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 scantiest rainfall in a century this month in onion-growing states in India, 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 of India, 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 India to contain retail inflation caused by food prices. Last month, India imposed a ban on non-basmati white rice. India accounts for about 40 percent of the world’s source of exported rice.