Govt watching wheat, flour prices; might remove duty

The central government might abolish the import duty on wheat if its price and that of flour maintain the “slight rising trend” seen since last month.

“We are keeping a close watch on prices of all essential commodities (and) will take all possible measures to cool down prices,” a senior official said.

Department of consumer affairs data showed wheat and wheat flour prices in major retail markets have risen by Rs 1-3 a kg over a month, mainly in anticipation of a drop in 2015-16 production. The central government has said wheat production in 2015-16 would be at least 94 million tonnes, almost eight mt more than a year before. However, there are many sceptics—they say the Centre’s own procurement isn't matching up to its estimates.  

Wheat procurement in the central pool as on date is 22.9 mt; the target was to purchase around 28 mt.

“The import duty on wheat in any case is due for revision on June 30 and then we will decide whether to abolish it or retain it, depending on the market rate,” another official said.

Meanwhile, in pulses, officials said the Centre would soon send a team to Maynmar, for import negotiation on a long-term and government-to-government basis.

The Centre has already decided to create a buffer stock of 150,000 tonnes of pulses, including 38,500 tonnes of import. Of the latter, 13,000 tonnes has arrived and another 6,000 tonnes is expected soon.