January 26, 2007

India allows duty-free corn till Dec 31

The Indian government has allowed duty-free imports of corn until the end of 2007 to tide over a shortage of the feedstock and help fight inflation.

Corn, which attracted an import duty of 60 percent, has been in short supply in recent months, pushing up domestic prices.

The decision came days after the government trimmed custom duties on vegetable oils and other commodities.

Anmol Sheth, president of All India Starch Manufacturers Association, said zero duty would boost corn supplies.

Sheth wants the government to reduce import duty and regulate exports to ensure domestic supplies.

He believed increasing use of corn for ethanol production in the US and restrictions imposed by China on corn exports would raise demand for Indian corn.