Exporters urge central govt for 5% incentives on onion exports

Nashik: The Horticulture Produce Exporters' Association (HPEA) is urging central govt to provide a 5% incentive for onion exports to help stabilize wholesale prices and increase international sales.
This request comes after average wholesale onion prices at Lasalgaon and other district APMCs have fallen significantly (60% in two months), despite the recent removal of the 20% export duty.
Prices at Lasalgaon APMC, the country's largest wholesale onion market, have dropped from Rs3,100 per quintal on Feb 14 to Rs1,250 per quintal.
The average wholesale price for summer onions has declined to Rs1,250 per quintal since the export duty removal on April 1 due to increased supply. Late kharif onions are fetching an even lower price at Rs900 per quintal. Currently, summer onions constitute about 90% of the market arrivals, with late kharif onions making up the remaining 10%.
Vikas Singh, vice-resident of HPEA, said central govt needs to provide 5% incentives for onion export to make it competitive, boost exports, stabilise wholesale onion prices, and save farmers from incurring heavy losses.
Exporters want the central govt to increase the Remission of Duties and Taxes on Exported Products (RoDTEP) rate from the present 1.9% to 5%.
"Currently, Pakistan is exporting onions at the price of $190 per tonne, while the onion export price from India is between $230 and $300 per tonne, depending on the quality of the produce. We need more incentives to compete with the global players and boost onion exports from India," Singh said.