Britannia exploring options to import wheat

28.09.2016

Wheat crop is expected to be around 10 million tonnes lower than earlier estimates of around 83 million tonnes.

 As Indian government reduced import duty on wheat from 25 per cent to 10 per cent, flour mills and major wheat consuming companies like Britannia have started exploring options of importing wheat. Britannia's wheat consumption is estimated at around a million tonnes and it consumes sugar of around 1.5 lakh tonnes. ITC is largest wheat buyer with close to 2 million tonnes wheat annually with around 1.2 million tonnes for flour and rest for biscuits and noodles. However it procures wheat domestically. Parle, a biscuit maker, is the second largest wheat consumer.

Since last one month as talks of cutting wheat import duty began, it resulted in moderation in wheat price which has fallen by 3 per cent to around Rs 1,800 per quintal in wholesale mandi.

When asked Britannia didn't spoke about import plan but said that duty cut will help controlling inflation. Manoj Balgi, Head Procurement for Britannia Industries Ltd, said: "Reduction in the import duty on wheat is an important step by the government. It will help in the reduction of the wheat price inflation in the market and will bring stability in the off season. With the recent reduction in the import duty, government has taken various pre-emptive measures, as a result of which a separate supply line for wheat will be created."

Wheat crop is expected to be around 10 million tonnes lower than earlier estimates of around 83 million tonnes but government is yet to revise that. However the Food Corporation India was facing a scarcity and reduced its open market sale quote from 5,000 tonnes per auction to just 2,000 tonnes earlier this month.

business-standard
 

Readers choice: TOP-5 articles of the month by UkrAgroConsult