Asian consumers have developed a serious dependence on Indian onion supplies for go-to dishes
Decision follows sudden spurt in onion prices, which have more than doubled since August; Traders says govt action unwarranted
MEIS rate had doubled to 10% last December, as prices ranged between Rs 1-3 a kg wholesale. The move took bulk prices to Rs 13 a kg steadily, and retail to Rs 20-25 a kg across the country
Under MEIS, the government provides duty benefits depending on product and country
Onion prices in Bangladesh have trebled in recent months , hitting an all time high of 100 taka ($1.22) a kg this week
India has set a minimum price of $850 per tonne for overseas sale of onions
Onion prices are ruling firm in the domestic market driven by speculations and the government is considering restricting exports by imposing minimum export price
Apeda estimates onion exports at 2.39 million tonnes in April-December 2016
Sops under MEIS were extended to boost exports, as realisations abroad were better than at home