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Government extends export sops on onions till March 31 this year

04 Jan 2017 Evaluate

Government has further extended export sops on onions by three months till March 31 this year. This step has been taken in order to curb steep fall in wholesale onion prices and protect interest of the farmers. As per the notification issued by Directorate General of Foreign Trade (DGFT), the body hereby extends the Merchandise Exports from India Scheme (MEIS) benefit at 5% freight on board (FoB) for onions fresh or chilled by further three months till March 31, 2017.

The prices of onions in wholesale markets fell by up to 42% to Rs 7.40 per kg at Lasalgoan (Maharashtra), Asia’s biggest onion market, during last month from an average Rs 12.80 per kg in the year-ago period on expected good production. Maharashtra, the top onion producer, had demanded the central government to extend export incentive of 5% to exporters under the MEIS for both fresh and stored onions, beyond December 31.

Of the total onion production recorded in the country, around 20% is grown during the kharif season. Since the kharif onion cannot be stored, farmers sell off the produce in domestic as well as overseas markets. The arrival of quality onions has boosted exports in the last few weeks. About 13,56,381 tonnes of onions have been shipped abroad in the April-September period of this fiscal.

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