The Government of India has increased the export incentives granted for Onions under the Merchandise Exports from India Scheme (MEIS) from existing 5% to 10% in the interest of farmers. This will result in better price for Onion in domestic markets. It may be noted that the Onion arrivals have increased in the market at present due to which the prices in the Mandis are subdued.

To contain the situation, it was decided by the Government to encourage exports of Onions so that the domestic prices stabilize. Thus, export incentives for Onions have been doubled to 10% from what is being currently provided under MEIS scheme. The export incentive for fresh inions was zero before July, 2018. During July, 2018, the incentives were introduced at the rate of 5%. Now, with the current increase, Onions enjoy one of the highest incentives for Agro-exports. This timely intervention would help the farmers who have recently harvested their produce and who have sowed/ recently transplanted their seeds, expecting better prices.