Business

Centre and traders divided over deciding the market price of onions and rice

Exporters and government officials in India are divided on the correct market price of food grains and onions, on which customs duty is calculated. The lack of a proper system to calculate the tax has led to under-invoicing by some traders to avoid customs duty and the illegal shipment of banned commodities. In response, the government has announced that only export contracts with a minimum price of $1,200 per tonne will be cleared for shipments under the basmati rice category. Both onion and rice exporters are now calling for customs duty to be fixed per kilogram of the commodity exported.

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