Import of maize is very expensive with 50 percent customs duty

25-Jul-2024 11:17 AM

New Delhi. The All India Starch Manufacturers Association has said that the government has allowed the import of 5 lakh tonnes of non-GM maize from abroad at a concessional customs duty of 15 percent under the Tariff Rate Quota (TRQ) system.

Under this import through the government agency - NAFED, the cost of its arrival to the starch manufacturing units is around Rs 28,000 per tonne, which includes freight from the port to the mills of Rs 2500 per tonne and 15 percent import duty.

A customs duty of 50 percent is applicable on the import of maize outside the TRQ and at this rate, the cost of maize reaching the mill is around Rs 35,000 per tonne, which also includes freight of Rs 2500 per tonne. 

According to the association, the import of maize is very expensive at both these levels of customs duty and this will cause financial loss to the starch industry. In view of this, the government should allow the import of duty-free and decontrolled maize.

The starch industry needs a huge amount of maize as raw material, so the Centre should immediately open its import at zero percent duty.

If this is not possible immediately, then permission should be given for import of 20 lakh tonnes of maize under tariff rate quota.

Maize imported from abroad will take two to two and a half months to reach Indian ports. The starch industry needs direct import of maize.