Wheat import duty might return with new crop

The recent decision to remove the import duty on wheat could be temporary, with restoration likely once the new crop comes into the market from April 1.

“The decision was taken to stabilise the price, rising due to low stocks in government godowns,” said a senior official. Once stocks reach comfortable levels, he said, the duty could be restored.

The duty was 10 per cent, lowered a few months earlier from 25 per cent. Wheat flour prices in retail markets had risen by Rs 5 a kg in recent months.  

Production in the 2015-16 crop year, marketed in 2016-17, has been estimated at a little over 93 million tonnes, well above the expectation of 90 mt. 

The Centre’s procurement for 2016-17 fell to  23 mt as against the target of a little over 28 mt. Less stock in the government’s own warehouses, estimated to be around 16.5 mt on December 1, was another reason for removing the tariff.