NEW DELHI (Reuters): The Indian Government on Friday doubled export incentives for onion farmers to 10%, following steep drops in recent weeks in the prices for onions, a staple food in India. The move will result in better prices for onions in the domestic market, the government said in a statement.
The export incentive program allows farmers to get a credit from the government which can be used to pay various taxes. Prime Minister Narendra Modi is currently trying to win back support from farmers ahead of a General Election, due to be held in May. The farmers have been angry about the lack of government support they have been given as crop prices have collapsed.