Indian Onion Prices Rise, Malaysia Will Be Impressed!

<p>&nbsp;Malaysians may need to prepare for food inflation following India's recent move to impose a toll on its onion exports.</p><p><br /></p><p>In a recent move to ensure adequate domestic supply, India announced a 40% export duty to be imposed on onions immediately until 31 December.</p><p><br /></p><p>It is hoped that the actions of the world's largest onion exporter will have an impact on the United Arab Emirates, Bangladesh, Nepal, Malaysia and Sri Lanka.</p><p><br /></p><p>The Ministry of Finance of India explained that the move was to stem the sharp inflation caused by rising prices of vegetables and other food goods.</p><p><br /></p><p>This is because, India is currently facing the driest season in August with a lack of rain which is likely to continue following the El-Nino phenomenon.</p><p><br /></p><p><br /></p><p>Mumbai-based exporter Ajit Shah said the export duty would make onions from that country more expensive than other major exporters such as Pakistan, China and Egypt.</p><p><br /></p><p>The average bulk onion price in the main market has soared by almost 20% from July to August, to 2,400 rupees (RM134.40) per 100 kg following concern that erratic rains will affect yields.</p><p><br /></p><p>The latest move follows New Delhi's ban on exports of non-basmati white rice to ease the pressure on soaring domestic prices.</p><p><br /></p><p>India's annual spike in inflation in July rose to its highest level in 15 months as prices for vegetables and cereals soared, putting pressure on the kingdom to take action to lower prices.</p>