The Centre on Saturday imposed a 40 per cent duty on onion exports. The move is aimed at cooling down the price of the kitchen staple, which is 20 per cent higher as compared to its last year price. 

A notification to this effect was issued by the Ministry of Finance, and the 40 per cent export duty was imposed with immediate effect. “This notification shall come into force with immediate effect and will remain in place till December 31, 2023,” read the notification. 

Consumer Affairs Secretary Rohit Kumar Singh said the step had been taken to improve the domestic availability of onions and contain the price rise. 

The move comes at a time when the onion prices have seen a significant spike in recent months. 

According to the price data available on the website of the Department of Consumer Affairs, the all-India daily average retail price of onion was recorded at Rs 30.72 per kg on Saturday, which is 20.75 per cent higher as compared to the last year’s rate of Rs 25.44 per kg. A month ago, the all-India daily retail price of onions stood at Rs 27.21 per kg.

The increase in domestic prices of onions coincides with a sharp jump in its exports. According to the trade data available on the Department of Commerce portal, onion exports reached 6.38 lakh tonnes during April-June 2023, which is 26.51 per cent higher as compared to the 5.04 lakh tonnes figure recorded during the corresponding period last year.