AgroStar Krishi Gyaan
18 Jun 19, 01:00 PM
Krishi VaartaOutlook Agriculture
Government Eliminates Incentives on Onion Export
The Government has discontinued onion export incentives under the Merchandise Exports from India Scheme (MEIS) in the midst of expectations that commodity prices will increase due to the effect of drought and concerns over monsoon rainfall.
The move came less than six months after the government extended the 10% incentive on December 28, 2018 to increase onion exports. The MEIS advantage was provided since the growers of this perishable commodity suffered from a lengthy recession.
“The government should not have withdrawn export incentives at this time,” said Jayadatta Holkar, chairman, Lasalgaon Agricultural Produce Marketing Committee. “At farmers’ end, onion prices are still ruling at Rs 12-13 per kg, while prices are comfortable at consumer end too. We have enough stock of onions, which can last till December.” Holkar demanded that the MEIS scheme be continued. “Withdrawal of the scheme will lead to a fall in onion prices, affecting farmers who are now selling to get money for sowing of Kharif crops,” he said. The scheme was originally applicable till June 30. Shah said that India’s onion production in 2018-19 was down about 20 per cent year-on-year. “However, this decline is not a big concern if we get good monsoon rainfall,” he said.
Source: Outlook Agriculture
If you find this information useful, click on the yellow thumbs up sign under the photo and also share this with your farmer friends using the options given below.