ITC may import duty-free wheat

ITC, the market leader in domestic branded atta, may import wheat this year with the government extending duty-free wheat imports for the entire calendar year.

"With the import policy open for the whole year, we can plan for wheat imports for our foods division", said S Sivakumar, chief executive, agribusiness division, ITC.

Though this wheat cannot be used for atta, as it lacks quality specifications, but it can be used for manufacturing biscuits. "For producing atta and pasta we need to use indigenous wheat," he said.

With wheat minimum support price (MSP) up from Rs 650 to Rs 750 a quintal plus a bonus of Rs 100, wheat prices in the domestic market may remain between Rs 900 and Rs 950 this year and companies will look to explore the import option.

Last year, ITC had procured about 6 lakh tonne wheat to meet its requirements towards atta and biscuits. It did not import any wheat last year.

On reports that government has instructed large corporate houses to stay away from wheat procurement in order to enhance government buying, Sivakumar said there was "no such instruction". ITC's brand portfolio includes Aashirvaad atta and Sunfeast biscuit.