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India set for wheat imports after six years to shore up reserves

Published May 30, 2024

Tridge summary

India is set to resume wheat imports after a six-year hiatus, driven by dwindling domestic stocks and the need to stabilize rising prices, following a series of poor crop yields. The country is expected to eliminate a 40% import tax, allowing private traders and flour millers to purchase wheat from countries like Russia. This decision aims to prevent a surge in prices during the festival season and ensure sufficient supply. Despite concerns over the impact on local farmers, the incoming government, likely to be led by the Bharatiya Janata Party under Prime Minister Narendra Modi, is set to remove the import duty after the ongoing election concludes. This move comes as India faces challenges in procuring wheat for its largest food welfare program, with the main opposition party, the Congress, promising to double the free grain supply to program beneficiaries if elected.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

India is poised to begin wheat imports after a six-year gap, to replenish depleted reserves and hold down prices that leaped following three years of disappointing crops, sources say, as the approaching end of general elections removes a key hurdle. New Delhi is expected to abandon a 40% tax on wheat imports this year, officials and other sources told, paving the way for private traders and flour millers to buy from producers such as top exporter Russia, albeit in modest volumes. As the new-season wheat harvest rolls in, the government is likely to wait until after June to scrap the import tax, in time for Russia’s harvest, the sources said. “There is a compelling case for the removal of the wheat import duty,” said Pramod Kumar, president of the Roller Flour Millers’ Federation of India. “That is the best possible way to ensure sufficient supplies in the open market.” The government is likely to concede to the demand. “The considered view is that the wheat import duty should be ...
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