The Indian government on Friday doubled export incentives for onion farmers to 10 per cent, 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 programme 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 by May. The farmers have been angry about the lack of government support they have been given as crop prices have collapsed.
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