Bloomberg Tax
Aug. 22, 2023, 12:30 AM

Soaring Onion Prices in India May Hurt Modi More Than Tomatoes

Pratik Parija
Pratik Parija
Bloomberg News

Rising onion prices in India pose a greater risk to Prime Minister Narendra Modi’s government than a recent spike of 700% in tomatoes, forcing authorities take fresh steps to contain food inflation before key polls.

India has imposed a 40% export tax on onions and plans to sell them locally at subsidized rates. The vegetable stands alongside tomatoes and potatoes as part of a trio of crops so crucial to Indian diets that past price spikes due to crop losses have prevented some ruling parties from returning to power. Consumers are more sensitive to onions — a vegetable that’s ...

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