look news india
Mumbai: The wheat processing industry has demanded the abolition of 40 per cent duty on wheat imports to address the shortage of domestic wheat supply. Not only was the carry forward stock of wheat at a 16-year low at the beginning of the current financial year, but the procurement of wheat at the support price by government agencies in the current year's Rabi season is also likely to be below target.
With the abolition of duty, imports will increase which will enable the government to increase the buffer stock and keep wheat prices under control. Wheat prices are currently 18 to 20 percent higher than two years ago.
On April 1, wheat stocks with the government were at a 16-year low. Volatility in wheat prices could have been avoided if we had adequate stocks, said an official of the Roller Flour Millers Association of India.
Association sources said a delegation of the association met government officials earlier in the week and recommended removal of import duty.
In the last ten days, the international price of wheat has increased by 12 to 13 percent. Removal of 40 percent import duty on wheat may make imports cheaper for processing units in the country.
Let us tell you here that the procurement of wheat at support price by government agencies is going on at a slow pace. The government has set a target of purchasing 300 to 310 lakh tonnes of wheat in the current year's Rabi season, but government sources recently said that this target is unlikely to be achieved.
There has been a decrease in wheat procurement in Madhya Pradesh compared to last year. An official of the Food Corporation of India (FCI) claimed that 270 lakh tonnes of wheat can be purchased at the support price in the current year.
