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Onion exporter benefits extended in India

Major onion producing states like Maharashtra, M.P., Karnataka, Gujarat and Rajasthan have seen a bumper crop production in September. Fearing a fall in prices as a result of the bumper crop the government of Maharashtra had appealed to the Ministry of Commerce to extend the MEIS duty benefits beyond Dec 31 in order to help the exporters of onion.

In September the Maharashtra State Finance Minister in his letter to the Finance Minister, Jaitley, had appealed that, “since the crop of onions is huge and early disposal of the product is required, I request you to please take up the matter at an appropriate level to ensure that the inclusion of onion exports under MEIS continues.”

He also mentioned that due to higher production, farmers and exporters in other onion producing states like M.P., Rajasthan, Gujarat and Karnataka too could be affected. "Maharashtra onions can be consumed within the state or exported out of the country. If onions cannot be exported, there will be a collapse of onion prices and farmers will have to face severe crisis and they will not be able to recover their production costs," he said.

Exports of onion were at 13,56,381 tonnes in the April-September period of this fiscal. The country's total onion production in 2015-16 crop year (July-June) is estimated to be higher at 20.99 million tonnes from 18.92 million tonnes last year. Maharashtra alone produced more than one-fourth of the country's total production of onion.

source: thedollarbusiness.com




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