In a bid to lower domestic prices of onion, the central government on Tuesday withdrew the Merchandise Exports from India Scheme (MEIS) benefits given for the export of "fresh or chilled" onions with immediate effect.
Recently, the prices of the essential vegetable has risen sharply.
Currently, wholesale prices have shot up at the country's largest wholesale market for onions in Lasalgaon in Maharashtra's Nashik district. The price of the vegetable was quoted around Rs 1,300 per 100 kg, up from Rs 900 on a month-on-month basis.
Accordingly, the Director General of Foreign Trade withdrew the MEIS benefit.
"The rate at which MEIS benefits for export of 'Onions Fresh or Chilled' under ITC (HS) code 07031010 is granted under the FTP has been made zero from the current 10 per cent with immediate effect," DGFT, which comes under the Ministry of Commerce and Industry, said in a public notice.
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