The Indian government has doubled export incentives for onion farmers to 10%, following steep drops in recent weeks in prices for onions, a staple food in India.
The move will result in better prices for onions in the domestic market, the government reported in a statement.
The export incentive programme allows farmers to get a credit from the government that 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.
Farmers have been angry about the lack of government support that they have been given as crop prices collapsed.
News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.
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