India: Centre mulls zero-duty wheat import plan to check rising prices and boost dwindling stocks

A plan to import wheat at zero duty after a gap of six years is in the works to check rising prices and boost dwindling stocks of the grain. A bunch of riders will be tagged to avoid allegations of favouritism towards importing country farmers, sources said. Wheat duty is 40 per cent at present. The government could allow shipments at designated ports and impose a price cap to limit forex outgo. Officials said several other options are under consideration, and a call taken by the new government after the Lok Sabha polls. Sources said the imports would make up the supply deficit and shipments may begin in September. The imports must also meet phytosanitary conditions, and the port should have the requisite facilities. According to the United States Department of Agriculture’s (USDA) foreign agricultural service (FAS) division, India may import around 2 million tonnes (mt) of wheat in 2024–2025. The FAS attributes this potential increase to several factors, including steady domestic ...