Government imposes 40% export duty on onions amid rising vegetable prices

New Delhi: The government on Saturday imposed a 40 per cent export duty on onion exports till December 31.

The announcement was made through a notification on Saturday. This notification shall come into force with immediate effect, and will remain in force up to and inclusive of the December 31, 2023. It comes as welcome news for many as the prices of various vegetables, including onions, potatoes, and tomatoes, have been on the rise in recent weeks.

In an effort to alleviate the situation, the government has also stepped in to address tomato prices. Starting from August 20, tomatoes will be sold at a fixed rate of Rs 40 per kilogram. This move aims to provide relief to consumers who have been facing the brunt of escalating tomato prices.

The Consumer Affairs Ministry disclosed that the decision to cap tomato prices was made in light of the ongoing decline in tomato costs in both wholesale and retail markets. Since July 14, the National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumers’ Federation (NCCF) have procured more than 15 lakh kilograms of tomatoes

Over the past month, these agencies have distributed tomatoes at subsidized rates in various regions, including Delhi-NCR, Rajasthan, Uttar Pradesh, and Bihar.

The spike in vegetable prices has not gone unnoticed, as it contributed to a rise in retail inflation for July, which reached 7.44 percent. This increase in food prices led to a food inflation rate of 11.51 percent for the same period.