India eliminates import duty on wheat

09.12.2016

Overseas purchases expected to climb to highest levels in a decade.
 
India’s Finance Minister Arun Jaitley on Dec. 8 said the government has reduced the import duty on wheat to zero from 10%, paving the way for overseas purchases to climb to their highest levels in many years, according to an article in The Economic Times.

According to The Economic Times, the move reflects the government’s effort to improve domestic availability of wheat in the wake of rising prices and concerns about the 2016-17 wheat crop.

Jaitley said the Dec. 8 notification amends a March 17, 2012 order so as “to reduce the import duty on wheat from 10% to nil without an end date, with immediate effect.”

The announcement comes after India’s government in September lowered the wheat import duty to 10% from 25%, with a planned end date of February 2017.

Jaitley first imposed the duty of 10% on wheat in August 2015. The decision was made after officials from the ministries of farm, food, trade and finance met to discuss ways to curb imports at a time when domestic stocks were ample due to seven years of bumper harvests aided by government subsidies.


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