According to a notification, the Union government on Saturday placed a 40% duty on onion exports up until December 31 in order to limit sales abroad. The decision was made as price increases were anticipated ahead of the holiday season, when demand for most items increases. According to the most recent data available, food prices drove retail inflation, which the government has been fighting, to a 15-month high of 7.44% in July. On August 11, the Centre declared it will begin releasing 300,000 tonne worth of state-owned onion reserves to increase supplies.

Key Points

• According to a notification, the Union government on Saturday placed a 40% duty on onion exports up until December 31 in order to limit sales abroad.

• According to the most recent data available, food prices drove retail inflation, which the government has been fighting, to a 15-month high of 7.44% in July.