Commerce department seeks additional funds to promote onion exports

NEW DELHI: The commerce department has sought additional Rs 180 crore to increase export incentives for fresh onions and also extend the existing sops beyond January 12, 2019 to pacify farmers who have complained of not getting sufficient price for their produce.

The commerce department said the increased benefits would bolster exports and support domestic prices. At present, the rewards for fresh onions under the Merchandise Exports from India Scheme (MEIS) are at 5% and scheduled to end next month.

For making customs duty payment, importers can use MEIS scrips, which are either received from government against exports as incentives or importers can purchase them from other exporters.


The department has asked for additional allocation so that MEIS reward of 10% can be provided for exports of fresh onions upto June 30, 2019 in the wake of representations made by the Maharashtra government, commerce and industry minister Suresh Prabhu wrote to his finance counterpart.

“Onion farmers are upset as they are not getting remunerative prices for their produce. The government also wants to make exports competitive and increasing MEIS incentives is one such way,” said an official in the know of the details.

India's exports of fresh and chilled onion were $256 million in the April-October period of 2018-19 compared with $511.5 million in 2017-18.

Prabhu had in October written to finance minister Arun Jaitley seeking extra outlay of Rs 1,500 crore under the MEIS to fulfil the government’s commitment of doubling farmers’ income and promote exports of agricultural products.