July 28, 2015
Sufficient supplies of wheat in India has prompted the government to consider imposing a 10% import duty on the grain since a tariff was last implemented eight years ago, Reuters reported.
The government had been criticised for permitting excessive wheat deliveries into India following decisions made by some companies in June to bring in 500,000 tonnes of high-protein wheat from Australia, supposedly the largest of such purchases in more than 10 years.
According to one official, the duty is edging closer to a final decision as it requires approval from Indian Prime Minister Narendra Modi.
India's farmers are offered more benefits for the production of grains over oilseeds and pulses, leading to storage volumes in local warehouses doubling target amounts.
However, wheat output in the country declined by 5.1 million tonnes to 90.8 million tonnes in the current harvesting season due to unseasonable rains in February and March. The drop was also the first to occur since 2007.