November 29, 2006

India may give more time for duty-free wheat imports

The government may consider extending the period for duty-free imports of wheat by private companies beyond Dec 31, a senior government official said Tuesday (Nov 28).

"Since 50 percent of the wheat plantings have already taken place, we are open to the idea of giving time up to March 31 to the private companies for duty-free imports," said the official.

However, he said no such decision has been taken so far, and Food and Agriculture Minister Sharad Pawar will consider the issue.

On Nov 8, the minister said the government had no plans at that time to extend the Dec 31 deadline.

The government official said a limited period was given to private companies for imports of duty-free wheat because it was feared that a surge in supplies from abroad could depress prices to undesirably low levels and discourage local farmers from sowing wheat.

"This is no longer the case; sowing has progressed well," he said.