Indian government considers onion export subsidy to stabalize prices
Oversupply has lead to a drop in price of onion wholesale price to rs500 which the government hopes to stop this by subsidizing exports, reducing the supply on the market.
While onion exports are rising officials do not believe the farmers are benefiting from the wholesale onion prices. Due to this reason, the government has asked NAFED to export onions so that prices will get stabilised.
The production of onions this year has been around 25 lakh metric tonnes. The minimum export price (MEP) of onions is zero and the government has introduced 5% subsidy (MEIS) for onion exporters from August 26, which will be in effect up to March 31. The export has not increased though.
A NAFED source said, "We have just conducted a survey at the Lasalgaon APMC to check the possibility of onion exports. We are mulling to export 30 metric tonne of onion a day. It is a part of the government policy to export maximum onions and stabilise the wholesale onion prices so that farmers will not incur losses. The money required for the export is to be used under the PSF."
source: timesofindia.indiatimes.com
