Amid growing concerns on fall in onion prices, the Centre on Friday doubled the export incentive to 10 per cent in a bid to ensure better returns for farmers. Currently, onion traders get five per cent export incentive under the Merchandise Exports from India Scheme (MEIS).
An official statement said the higher incentive will encourage exports which, in turn, will result in correction of prices in the domestic market. Commerce Minister Suresh Prabhu has written to the finance ministry seeking `179.16 crore to implement the move.
“In view of the urgency of the situation, the finance ministry is requested to allocate additional funds of `179.16 crore, so that MEIS reward at 10 per cent can be provided for the export of fresh onion up to June 30 next year,” Prabhu wrote to the finance ministry.