Central Government on Friday increased the export incentives granted for Onions under the Merchandise Exports from India Scheme (MEIS) from existing five per cent to 10 per cent.
This will result in a better price for Onion in domestic markets. The Onion arrivals have increased in the market at present and due to which the prices in the Mandis (market) are subdued.
To contain the situation, it has been decided by the Central Government led by Prime Minister Narendra Modi to encourage exports of Onions so that the domestic price stabilises and thus, the export incentive for Onions 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. In July, the incentives were introduced at the rate of five per cent. Now, with the current increase, Onions have one of the highest incentives for agro-exports.
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