September 11, 2006

India notifies wheat import duty cut to zero from five percent

India Saturday (Sep 9) notified a cut in import duty on wheat to zero from 5 percent with immediate effect until Dec 31, 2006.

"The decision to cut duty was taken on Aug. 31 by the Cabinet Committee on Prices but notification was to be issued only after government finalised its own purchase under a tender issued by the State Trading Corp (STC)," an official statement said.

Government has finalised its wheat import contracts for 1.67 million tonnes Saturday and therefore the duty on imports by private companies is now being cut, the statement said.

Prior to the notification, government was importing wheat through STC without paying any tariff but private traders could do so only after paying an import duty of 5 percent.

The duty has been cut to keep a check on local prices and augment supplies through increased volumes of imports by private companies.