India government slaps 10% duty on wheat, tur imports

In yet another instance of the Centre’s policy flip-flop with regard to farm imports, it imposed 10% import duty on wheat and tur dal on Tuesday, with the ostensible objective of ensuring higher price realisation by farmers amid expectations of bumper crops. Last December, India government had allowed duty-free imports of wheat to increase domestic supplies and curb prices, while it had in September slashed the duty on the grain from 25% to 10%. The removal of the import tariff was despite the agriculture ministry expecting record-high domestic wheat production in 2016-17 (July-June) and pitching for the continuance of the duty.

The estimated revenue implication of the latest decision to impose duties is about R840 crore at the current levels of imports, minister of state for finance Arjun Ram Meghwal said while announcing the decision in Lok Sabha. While new wheat crop arrivals have just started, the government’s procurement will start from April. Last week, food and consumer affairs minister Ram Vilas Paswan had said that the government was in favour of re-imposing import duty on wheat to protect farmers’ interests. Traders have estimated wheat imports so far this financial year at around 5 million tonne, while official sources say the imports in the year would be around 5.5 million tonne.