India's move again!, Prohibition of Rice Export Price | India | Export
On July 20th local time, the Indian government announced that in order to ensure domestic market supply, India will ban the export of rice except for steamed rice and Indian fragrant rice. On August 19th local time, the Indian Ministry of Finance issued a notice imposing a 40% tariff on onion exports. This notice will take effect immediately and will be implemented until December 31st of this year.
According to the notice, the purpose of this measure is to curb the price increase of onions while ensuring sufficient supply in the domestic market in India. Data shows that the wholesale price of onions in India's main market rose to 24 rupees per kilogram between July and August, an increase of nearly 20%.
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Indian onion prices are highly sensitive to climate, and when encountering off-season rainy seasons or high temperatures, domestic production in India will decrease and prices will rise. The main onion producing areas in India experienced monsoon rainfall in July, leading to increased onion decay. However, India may experience the driest August in over 100 years, which will affect crop yields such as onions. Industry insiders predict that onion prices will further increase in the future.
On the 11th, the Indian government had already started releasing onions from its inventory. Reuters reported that India is the world's largest exporter of onions, with onion exports reaching 1.46 million tons in the first half of this year, a year-on-year increase of about 63%. It is reported that due to the recent overall increase in vegetable prices, India's consumer price index in July increased by 7.44% year-on-year, reaching the highest level in 15 months.
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