Kathmandu: In response to escalating onion prices in the domestic market, India has officially prohibited the export of onions, as per a notice issued by the Indian government on Wednesday. The export embargo will remain in effect until March 31, 2024, according to the notice issued under the Foreign Trade Act and Policy.
The notice clarifies that consignments of onions will be permitted for export if the loading process onto the ship commenced prior to the issuance of the notification.
Earlier in August, India had initially imposed a 40% customs duty on onion exports as part of efforts to curb inflation ahead of crucial elections. The export tax was initially intended to continue until the year’s end. However, as the export tax failed to halt onion exports to other countries, Indian authorities have now opted for a complete ban to ensure a sufficient onion supply for domestic consumers.
Simultaneously, the Kathmandu Valley in Nepal is facing a shortage of potatoes and onions. Traders have halted the sale of these vegetables in the Kathmandu Valley, citing the government’s decision to impose value-added tax (VAT) on these agricultural products.