NEW DELHI (Reuters) - India has doubled its import tax on wheat to 20 percent, according to a government order made on Wednesday, as the world's second biggest producer tries to rein in imports to support local prices.
In the last two years India has been importing wheat after local production fell due to successive droughts. Indian farmers have started sowing new season wheat that will be ready for harvesting from March.
Imports of wheat are not possible with a 20 percent import duty and even overseas purchases of peas will slow in the coming months, Pravin Dongre, chairman of the India Pulses and Grains Association told Reuters.
"These are very good moves to support local prices and farmers."
(Reporting by Rajendra Jadhav and Mayank Bhardwaj; Editing by Greg Mahlich and David Evans)
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