India: Government likely to impose 10% import duty on Wheat

09/07/2015 12:00 - 612 Views

The government is considering imposing 10% import duty on wheat to curb shipments and liquidate poor quality grains lying in FCI godowns.

At present, there is no import duty on wheat. Flour millers and private traders are importing wheat on lower global prices and lack of high-quality grains in the domestic markets.

Imports are happening despite bumper domestic wheat output in the 2014-15 crop year and surplus stocks with the Food Corporation of India (FCI), the nodal agency for procurement and distribution of foodgrains.

"The Food Ministry has proposed imposition of 10 per cent import duty on wheat imports. A final call on this issue would be taken after consultation with the ministries concerned," a senior government official told PTI.

"There is a need to restrict overseas purchases as there is sufficient stock in the country," the official added.

July 2, 2015
Source: CommodityOnline