NEW DELHI: Concerned over the fall in onion prices, the government Friday doubled the export incentive for the kitchen staple to boost shipments and ensure better returns for farmers.
The scheme has also been extended till June 30 next year.
At present, onion exporters get 5 per cent incentive on fresh crop under the Merchandise Exports from India Scheme (MEIS), which was valid till January 12, 2019.
“The government has increased the export incentives under the MEIS from existing 5 per cent to 10 per cent in the interest of farmers,” an official statement said.
This will result in better price for onion in domestic markets. Wholesale prices of onion are “subdued” at present due to increase in the arrival of the fresh crop in the mandis, it said.
“To contain the situation, it has been decided by the government to encourage export of onions so that the domestic prices stabilize,” the statement said.
With the current increase, onion enjoys one of the highest incentives for agro-exports. This timely intervention would help the farmers who have recently harvested their produce and who have sowed or recently planted their seeds and expected better prices, it added. PTI
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