The Centre on Saturday imposed a 40% duty on the export of onions to check price rise and improve supplies in the domestic market.

The Union government will also offload stocks of onions in various wholesale markets to reduce retail prices.

“This notification shall come into force with immediate effect, and will remain in force up to and inclusive of December 31, 2023,” a gazette notification of the Union Finance Ministry’s Revenue Department said.

The export duty comes amid reports that onion prices are likely to rise in September.

The national average prices of essential vegetables had increased by at least ₹5 compared to last year. On Saturday, the national average price was Rs 30.72 per kilogram, with a maximum price of Rs 63 per kilogram in Champhai in Manipur and a minimum of Rs 10 per kilogram at Neemuch and Burhanpur in Madhya Pradesh.

Between April 1 and August 4, this fiscal, 9.75 lakh tonnes of onions have been exported from the country. The top three importing countries in value terms are Bangladesh, Malaysia, and the UAE.