Suresh Prabhu Want More Funds for Incentivising Onion Exports
Commerce Minister Suresh Prabhu has sought Rs 179.16 crore from the Finance Ministry to double the incentives for onion exporters amid significant fall in prices of the vegetable.
In a communication to Finance Minister Arun Jaitley, Prabhu said the ministry was keen to increase export incentives under MEIS from 5 per cent to 10 per cent.
Under the Merchandise Exports from India Scheme (MEIS), the government provides duty benefits depending on product and country. Rewards under the scheme are payable as percentage of realised free-on-board value and MEIS duty credit scrip can be transferred or used for payment of a number of duties including the basic customs duty. The reward for exports of fresh onion under this scheme is 5 per cent till January 12 next year.
“The higher reward rates are expected to bolster the exports and would be necessary to support the domestic prices. In view of the urgency of the situation, the Finance Ministry is requested to allocate additional funds of Rs 179.16 crore, so that MEIS reward at 10 per cent can be provided for the export of fresh onion up to June 30 next year,” Prabhu said.