The Government increased the export incentives granted for Onions under the MEIS from existing 5% to 10%. This will result in better price to farmers for Onion in domestic markets. (due to increased supply of Onions in the market, the prices in the Mandis are subdued.
About:
Merchandise Exports from India Scheme (MEIS)is one of the two schemes introduced under Foreign Trade Policy of India (FTP 2015-20), as a part of Exports from India Scheme. The other scheme is Service Exports from India Scheme (SEIS).
MEIS replaced the following five other similar incentive schemes present in the earlier Foreign Trade Policy 2009-14:
Focus Product Scheme (FPS)
Focus Market Scheme (FMS)
Market Linked Focus Product Scheme (MLFPS)
Infrastructure incentive scheme
Vishesh Krishi Gramin Upaj Yojna (VKGUY)
Objective of the MEIS: To offset infrastructural inefficiencies and the associated costs of exporting products produced in India.
Salient Features:
The scheme provides incentive in the form of duty credit scrip to the exporter to compensate for his loss on payment of duties.
To determine the quantity of incentive, the countries have been segregated into three groups.
Group A has India’s traditional destinations such as the EU countries and USA.
Group B covers almost all of India’s major export destinations globally. Group B has the highest quantum of incentive.
Group C on the other hand has no incentive at all. It can be divided into, SAARC, Australia and New Zealand, some EU and African countries.
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