Wheat prices are likely to stabilize only after duty-free import and OMSS are started
24-Jun-2024 04:00 PM
New Delhi. To create an environment of stability in the domestic market price of wheat, it is necessary to allow duty-free import of wheat from foreign countries.
Along with this, it is also necessary to start weekly e-auction sale of wheat from the central buffer stock under the Open Market Sale Scheme (OMSS). Roller flour millers / processors and traders are constantly urging the government to allow duty-free import of wheat,
but the government is rejecting it saying that there is sufficient stock of wheat available in the country and in the buffer stock.
A basic import duty of 40 percent is applicable on the import of wheat, which is being strongly demanded to be removed.
At present, the price of wheat is low in the international market and if the customs duty is abolished, then it can help in increasing the supply and availability of this important food grain in the domestic market and controlling prices through cheap imports. In Russia,
Ukraine, Romania, France, USA and some other countries, the arrival of new consignments of winter and spring wheat is expected to start from next month,
so that it can be purchased in good quantity at cheap prices for the contract of the coming months. New consignments of wheat may start arriving in Canada from August and in Australia from October.
According to official sources, the government is considering both the important points. It may be that along with the reduction of customs duty on wheat, a fixed limit of imports may be fixed. Similarly,
by restarting the open market sale scheme, the minimum reserve price of wheat can be increased somewhat because for the Rabi season of 2023-24, the government has increased the minimum support price of wheat by Rs 150 to Rs 2275 per quintal.
It is understood that if the customs duty is abolished, then large quantities of wheat will start being imported from abroad at the ports of South India.
The arrival of wheat in the markets of major producing states of North India has decreased considerably even though the deadline of the marketing season has not yet formally ended.