If the stock limit on wheat does not work, then a liberal import policy is possible

25-Jun-2024 06:19 PM

New Delhi. An import duty of 44 percent has been imposed on wheat since 2018, which has not yet felt the need to be removed. Although the price of this important food grain was very high and sharp last year, the government tried to keep the market stable by selling its stock. Earlier in the year 2022,

when there were signs of a sharp rise in the prices of wheat and its products, the government banned its commercial export.

Last year, flour millers and processors had requested the government to allow duty-free import of wheat and for some time it seemed that the government might accept this request but later changed its mind. Now the demand for this is being raised again and it is expected that the government will accept it.

Some government officials say that there is an option to import wheat from abroad, but the final decision in this regard will be taken only when there is a dire need for it. It is also being said that permission may be given to import wheat in a certain quantity.

The point to be noted here is that there is no direct ban on wheat imports, but the hefty customs duty of 44 percent is making its import unattractive or unprofitable.

But critics say that before deciding to reduce or remove customs duty, the government would like to use all the arrows in its quiver.

This has already begun with the storage limit, while restarting the Open Market Sale Scheme (OMSS) could be the second step.

Reducing the allocation of wheat in the Pradhan Mantri Garib Kalyan Anna Yojana and other welfare schemes could also be a measure.

When these measures do not work and the market price remains at a high level, then serious consideration can be given to allowing duty-free import of wheat.