No proposal to change the duty structure on wheat imports

13-Jun-2024 08:56 PM

New Delhi. The Central Food and Public Distribution Department has said that the government is keeping a close watch on the market price of wheat.

During the Rabi Marketing Season of 2024, about 1120 lakh tonnes of wheat is expected to be produced in the country and sufficient stock of this important food grain is also available in the central pool.

At present, no proposal is under consideration to make any change in the duty structure applicable on the import of wheat.

It is known that there is an import duty of 40 percent on wheat and flour millers and processors are strongly demanding the government to remove it.

According to the Food Ministry, it is being ensured that the required stock of wheat is not made by unwanted elements, its regular supply is maintained in the market and an environment of stability in prices is maintained.

In the current Rabi Marketing Season, about 266 lakh tonnes of wheat was purchased by the Food Corporation of India (FCI) from farmers till June 11, 2024. About 184 lakh tonnes of wheat is required annually for supply in the Public Distribution System (PDS) and other welfare schemes.

Even after meeting this requirement, the government will have sufficient surplus stock of wheat and with its help, the government can intervene in the market whenever and wherever required.

Different rules for buffer stock of wheat are prevalent for each quarter. On January 1, 2024, 163.53 lakh tonnes of wheat stock was available in the central pool, which was much higher than the minimum required stock of 138 lakh tonnes.

At no time did the stock of wheat fall below the minimum fixed (mandatory) quantity. At present, the supply and availability situation of wheat remains comfortable and hence no proposal to change its import duty structure is being considered.