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Govt doubles import duty on wheat to 20 pc

Press Trust of India  |  New Delhi 

The today doubled the import duty on wheat to 20 per cent to curb cheap shipments and give positive price signal to farmers in the ongoing Rabi season. It also imposed import duty of 50 per cent on peas to check cheaper shipments from countries like The (CBEC) in a notification said that it seeks "to (i) increase rate of basic customs duty on Peas, (Pisum sativum) from present Nil rate to 50%. (ii) increase rate of basic customs duty on wheat from 10% to 20%." In March, the had imposed 10 per cent import duty on wheat to contain sharp fall in local prices in view of bumper crop of 98.38 million tonnes in 2016-17 crop year (July-June). As farmers have started planting of rabi (winter) wheat crop, the wants to give positive price signal and encourage farmers to grow wheat in more area. The does not want wheat growers to follow the way of pulses farmers who shifted to other crops this kharif season as prices remained low just before the sowing period owing to bumper crop last year. India produced a record 22 million tonnes of pulses in 2016-17 crop year which led to a fall in domestic prices, even below the MSP. Moreover, the country also imported about 5 million tonnes of pulses last fiscal. The import duty on peas has been imposed to curb shipments and boost domestic prices. Recently, the had also imposed quantitative restrictions on import of other pulses like tur.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, November 08 2017. 22:13 IST