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.