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

Published 2024년 6월 4일

Tridge summary

The Indian government plans to import wheat at zero duty for the first time in six years to control rising prices and replenish stocks, currently facing a 40% import duty. Imports, expected to begin in September, will adhere to phytosanitary conditions and specific ports. The USDA projects India may import around 2 million tonnes of wheat in 2024-2025 due to steady demand and declining stocks. The government is closely monitoring wheat prices and has various market intervention strategies. Wheat procurement for the 2024-25 season has reached 26.46 million tonnes, slightly higher than the previous season but below the target of 30-31 million tonnes. Retail wheat prices have remained stable at ₹28/kg, with retail inflation rising to 6.02% in April.

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Original content

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 ...

Source: UkrAgroConsult