India Puts 40% Tax on Onion Export as Inflation War Intensifies

India imposed a 40% levy on the export of onions as Prime Minister Narendra Modi escalates efforts to bridle inflation ahead of key elections.

The export tax will be effective immediately and continue through the end of the year, according to a notification by the country’s finance ministry on Saturday. The measure is expected to improve domestic availability of the vegetable.

India’s inflation has surged to a 15-month high, building urgency for the government to take measures to contain spiraling food prices. Modi in a speech to the nation on Aug. 15 vowed to fight inflation as he prepares ...