Govt imposes 40% duty on onion exports till December 31

In an effort to reduce the price of the product regionally, the Central Board of Indirect Taxes and Customs (CBIC) recently imposed a 40% customs levy on onions shipped from India, according to an official order.

According to the orders, the export duty would remain in effect through December 31, 2023. According to CBIC, the decision was made in the public interest.

The action is part of the government's strategy to fight inflation by employing trade-related policies. Wheat and rice exports are already subject to restrictions imposed by the government. The import tax on edible oils has previously been lowered by the Centre.

Due to the rising prices for food and vegetables, India's consumer pricing index (CPI)-based inflation in July was 7.44%, far higher than the Reserve Bank of India's (RBI) upper tolerance limit of 6%.