Pvt traders may get extension for duty-free wheat import

The government is likely to extend the duty-free import of wheat beyond December this year for private traders to increase the domestic supply of the commodity.

"I see no problem at the official level to push that recommendation," Food Secretary T Nanda Kumar said today in response to the Roller Flour Millers Federation's (RFMF) demand for duty-free wheat import by private trade beyond December 2007 at the federation's annual general meeting.

Kumar also said the government had not decided to make import of wheat products such as wheat flour and maida duty-free. "As of now, we have not decided on it. But if we see a huge rise in flour prices, we may do it," he said. Nanda Kumar asked the flour millers to cooperate with the government by maintaining the price till the new crop arrived in the market.

"While we achieved a production of 74.89 million tonnes wheat this year, a target of over 75 million tonnes has been set up for the next season," he said. The normal market price this year has been reasonably stable and the consensus is that it would remain stable during the year. Currently, the wheat price is ruling in the range of Rs 1,010-1,020 a quintal.

Speaking at the occasion, Food Corporation of India Chairman and Managing Director Alok Sinha said there would be no need to sell wheat under the Open Market Sales Scheme since wheat prices in the market were comfortable. The RFMF also demanded exempting wheat and wheat products from VAT. "We should collectively push for a lower VAT on wheat and wheat products since these are staple food," said Kumar.