The Indian government has decided to allow wheat imports as the commodity prices have risen to six month high due to rising demand and supply shortage. Further, imports will also be allowed through southern ports of the country and the Customs duty has been lowered that could be either zero or 15 per cent. The wheat consignments are expected to arrive at Thoothukudi, Kochi, Krishnapatnam ports. The government will ensure that the imported commodity will not be used for seed purpose.
Currently, a total of 44 per cent Customs duty is imposed on wheat imports. There is also a proposal to allow importers to supply wheat to the Food Corporation of India and they may be given a duty waiver.
India is opening up its wheat market to imports after five years, when high quality wheat particularly from Australia were shipped into the country.
Though wheat production has been estimated at a record 112.74 million tonnes (mt) this year, the trade has been facing supply shortage. The FCI procured 26.2 mt of wheat this year, while some 30 mt are with farmers for resowing. Another 9-10 mt were declared by the trade and industry as stocks held by them.
