Centre extends 5% MEIS benefits for onion exporters.

NASHIK: The Union government has extended the Merchandise Exports from India Scheme (MEIS) benefits at 5% for onion exporters from December 31 to March 31.

The government had introduced the MEIS of 5% for export of "onions fresh or chilled" with effect from August 26, 2016. This was valid up to December 31.

 But the government has now extended the scheme till March 31, 2017 following demand from the exporters the Lasalgaon Agriculture Produce Market Committee (APMC).

The decision was taken by the ministry of commerce and industry on Thursday and the office of the director general foreign trade issued a circular regarding the issue on Friday.

In August, Union government had introduced 5% subsidy under MEIS which was valid upto December 31. Lasalgaon APMC and onion exporters were worried that prices would decline if the government did not extend the subsidy. Accordingly, the Lasalgaon APMC urged the government for an extension of the scheme in a bid to stabilise onion prices.