The government on August 19 imposed a 40% duty on all types of onions exported from India to tame strong bullish trend in onion prices. This caused a nearly 70% fall in onion exports, said market sources. Meanwhile, in a meeting held on Monday, traders from Nashik decided to continue their onion strike that started on September 20. This is not likely to affect the onion prices in the country.
The government on August 19 imposed a 40% duty on all types of onions exported from India to tame strong bullish trend in onion prices. This caused a nearly 70% fall in onion exports, said market sources. Meanwhile, in a meeting held on Monday, traders from Nashik decided to continue their onion strike that started on September 20. This is not likely to affect the onion prices in the country.
In the recent past, tomato prices leapt to as high as Rs 300 per kg in many states because of supply disruption due to heavy rains. Onion prices too are surging, though not quite as alarmingly.
Onion traders from Nashik's Lasalgaon have called for a ‘bandh’ to protest against the Centre's decision to impose 40% export duty on onions. Farmers are also unhappy about the govt decision to purchase only 2 lakh metric tonnes at Rs 2,410/quintal
PM Modi faces challenge of rising food inflation with skyrocketing onion prices. Onions crucial to Indian diets and historically linked to downfall of governments. Stable food prices crucial for Modi s re-election bid.