The demand for seeking incentives for the export of fresh onions is getting stronger. After the director general of foreign trade (DGFT) increased the Merchandise Export from India Scheme (MEIS) benefits for dehydrated onions from 3% to 5%, the decision was not received well by onion traders who sought incentives for the export of fresh onions as well. Now, the Lasalgaon Agriculture Produce Market Committee (APMC) — the largest wholesale market for onion in the country — has sought the extension of the incentives given for the export of dehydrated onions to fresh onions.
“The government needs to grant MEIS benefits at 5% for the export of fresh onions,” Jaydutt Holkar, chairman, Lasalgaon market committee said. “At present, the Lasalgaon market is flooded with the arrival of summer onions. Arrivals vary from 15000 quintals to 20,000 quintals on a daily basis with modal prices touching Rs 700 per quintal to Rs 800 per quintal. If one considers the modal prices of onions, it may be seen that farmers are not able to meet even their cost of production, causing financial distress,” he added. He also stated that there has been a bumper production this year which leaves a lot of onion with the farmers.
“Farmers have already stored red onion which was again a good crop and the summer onion is also being stored by them. There is a possibility of farmers bringing out this stored onion as well which could cause a further fall in prices. With forecast of a normal monsoon, which is expected to arrive on time, farmers are likely to increase area under kharif onion, which had given good returns in the previous year. With large storage of the rabi crop, any increase in kharif production of onions can lead to a glut in the market.”
He said since Indian onion is more expensive than other countries, the demand for it is less and emphasised on the need for export incentives. Holkar has written to the Centre about this issue.
Source: financialexpress.com