Government’s big decision amid rising onion prices, imposed 40 percent export duty

The government has imposed 40 per cent duty on onion exports till December 31 this year. As a measure to control rising prices in the domestic market, the Center has announced 40 per cent export duty on onions till December 31, the Union Finance Ministry’s notification said. It added that the fee is applicable with immediate effect. This step has been taken because onion prices are continuously increasing this month. The report said that onion prices are likely to continue rising in September.

Earlier, the Reserve Bank of India (RBI) said in its bulletin on Thursday that tomato prices have recorded a further increase on average in August so far, although the latest data indicates some decline in the rates. The bulletin said that the prices of onion and potato also registered a gradual increase. The country’s economy is picking up pace in the second quarter. However, inflation has consistently remained above the central bank’s comfortable level of six per cent.