Govt allows duty-free imports of maize

MARKET WATCH

Move will ensure availability of input for starch industry.

In a move to curb the rising prices of maize, the government today slashed the import duty on maize to zero from the existing 60 per cent. However, the zero duty regime is only for calendar 2007 and will reviewed towards the end of this year after gauging the impact on prices.

In the past one year, prices of maize have gone up from Rs 600 a quintal to Rs 750 in the domestic market. There is increasing pressure from starch manufacturers and poultry industry, the two major consumers of maize to regulate the higher import duties.

In an attempt to control the prices of essential commodities, the government had last year exempted customs duty on wheat and pulses. It also reduced customs duty on edible oils only a day back.

"The move will ensure availability of maize for the industry, which so far was reluctant to import maize at a high duty of 60 per cent", said Amol S Sheth, president of the All India Starch Manufacturers' Association. The starch industry consumes about 12 lakh tonne maize annually.

"The duty cut will facilitate import of maize and it will have a psychological impact on the domestic prices", said Shashi Kapur, president, Poultry Federation of India.