Global onion prices could be set to rise with India slapping an export tax on domestic production

India has imposed a 40% export tax on onions to ensure domestic availability and cool inflation, leading to potential price increases for major importers such as Bangladesh, Malaysia, Sri Lanka, and parts of the Middle East.

cnbc.com

Relevant topic timeline:

8/21/2023

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India's decision to impose a 40 percent export duty on onions may exacerbate food inflation in Gulf Cooperation Council (GCC) countries and disrupt supply chains, potentially leading to shortages and price fluctuations. However, the impact is expected to be temporary, and other onion-producing nations may respond to the higher prices by increasing their supplies. GCC countries may need to consider diversifying their sourcing of onions and bolstering domestic cultivation to mitigate future vulnerabilities.

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Is India exporting food inflation to the world?

Erratic climate conditions in India, including a dry August, have led to a significant increase in food prices, with onions alone becoming 25% more expensive since June, causing concern about global food inflation as India is a major exporter of rice, sugar, and onions and is a key supplier to many Asian and African countries.

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Posted 8/22/2023, 12:29:00 AM