Business Standard

Government increases export incentive for onion farmers to 10%

IANS  |  New Delhi 

In a New Year gift to onion farmers, the government on Friday increased the export incentives granted for under the merchandise exports from India Scheme (MEIS) from existing five per cent to 10 per cent, said.

In an official release it said that the decision will result in better price for onion in domestic markets.

The ministry also pointed out that the onion arrivals have increased in the market due to which the prices in the 'mandis' are subdued.

"To contain the situation, it has been decided by the government to encourage exports of so that the domestic prices stabilize," it said.

"Thus, export incentive for have been doubled to 10 per cent from what is being currently provided under MEIS scheme. The export incentive for fresh onions was zero before July, 2018," it said.

The ministry said during July, 2018, the incentives were introduced at the rate of 5 per cent. "Now, with the current increase, onions enjoy one of the highest incentives for agro-exports," it said.

"This timely intervention would help the farmers who have recently harvested their produce and have sowed or recently transplanted their seeds," the ministry added.

--IANS

aks/prs

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, December 28 2018. 18:28 IST
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