December 21, 2006

 

India to consider removing corn import duty

 

 

India's agriculture minister Sharad Pawar Wednesday (Dec 20) said that government may consider removing import duty on corn, but there are no plans to ban its exports.

 

"A request has been received from the poultry industry not to impose a duty on imports and we will seriously consider it," the minister told reporters at a press conference.

 

The government is against banning exports of any commodity as it amounts to a "great injustice" to farmers, the minister said concerning a query over whether corn exports will be banned.

 

The minister said there is a shortage in supply of corn, but added that winter planting is still going on and production may rise on the year.

 

On wheat, he said the area covered so far is 23.25 million hectares compared with 21.0 million hectares a year earlier.

 

"Weather is favourable for sowing, temperature in most growing regions is optimum and production (in 2007) may cross 74 million tonnes," Pawar said.

 

He said wheat acreage in 2006/07 is expected to be 1.5 million hectares higher on year.

 

Wheat is sown between October and January and harvested from February onwards.

 

The minister said availability of wheat in the local market is comfortable and prices have started to decline.

 

Wheat prices in the local market in Delhi declined by Rp620/tonne (US$13.87/tonne) on Monday to Rp9890/tonne.

 

Of the total contracted imports of 5.5 million tonnes, 4.0 million tonnes have already arrived and the remaining is expected to be delivered by second week of February, said Pawar.