Government has doubled the export incentives for onion farmers from existing 5 percent to 10 percent.
In a release, Agriculture Ministry said, this will result in a better price for Onion in domestic markets. At present, the Onion arrivals have increased in the market due to which the prices in the Mandis are subdued.
The Ministry said, to contain the situation, it has been decided to encourage exports of Onions so that the domestic prices stabilize.
The export incentive for fresh Onions was zero before July 2018. During July this year, the incentives were introduced at the rate of five per cent. The Ministry said, now, with the current increase, Onions enjoy one of the highest incentives for Agro-exports.
This timely intervention will help the farmers who have recently harvested their produce and who have sowed or recently transplanted their seeds, expecting better prices.