Trade
India Puts 40% Tax on Onion Export as Inflation War Intensifies
- Customs duty will be effective till Dec. 31, finance ministry
- India’s inflation at a 15-month high on surging food costs
A worker seals a sack of onions at a wholesale market in Mumbai, India.
Photographer: Dhiraj Singh/BloombergThis article is for subscribers only.
India imposed a 40% levy on the export of onions as Prime Minister Narendra Modi escalates efforts to bridle inflation ahead of key elections.
The export tax will be effective immediately and continue through the end of the year, according to a notification by the country’s finance ministry on Saturday. The measure is expected to improve domestic availability of the vegetable.