The Indian government has imposed a 40% tax on onions for export as prices of the vegetable spike, driving up retail prices of what is a key food item for many households in the country. Traders told the Economic Times that in September prices of quality onions could near double. Possible hoarding could lead to immediate inflation even before the export taxes come into force, while supply concerns could bring prices down again in the future. However, onions have a bearing on the Indian political circuit too and controlling the prices are crucial in run up to elections.

Related Keywords

India , Delhi , Madhya Pradesh , Philippines , Indira Gandhi , Bhairon Singh Shekhawat , Lok Sabha , Sushma Swaraj , Subhash Chandra Garg , Nirmala Sitharaman , Abhirup Sarkar , Manmohan Singh , Swarup Gupta , Pushan Sharma , Narendra Modi , Professor Of Economics At Indian Statistical Institute , Mint Street , Might Also Like , Prime Minister Narendra Modi , Indian Statistical , Chandra Garg , Finance Minister Nirmala Sitharaman , Minister Bhairon Singh Shekhawat , Economist Intelligence Unit , Onion Prices , Onion Impact On Economy , India Onion Politics , Onion Impact On Politics , Why Is Oniona Political Crop , Indias Inflation Rate , Lok Sabha Elections , Onion Price Rise , Onion Exports ,