Union Government scraps import duty on wheat  

The Union Government has waived the import duty on wheat to zero from 10 per cent for an indefinite period.
This move aims to improve domestic availability in the wake of rising prices and concerns about the wheat crop in 2016-17.
The duty was waived because of uncertainty over the wheat output this year. Despite a rise in area sown, questions are raised over condition of the wheat crop, low fertiliser and pesticide use due to and fears of a warm winter.
The waiving of import duty will make wheat imports (especially from Australia and Ukrainian) considerably cheaper. This will fuel imports to over 6 million tonnes in 2016-17. This will be the highest wheat imports in the 10 years.
Background
The wheat production in the country will be around 93.50 million tonnes in 2016-17 as per the government estimates. However, many experts have pegged the figures around 90 million tonnes due to year-on-year droughts in 2014 and 2015. Moreover, Union Government’s own wheat stocks are at an all-time low due to less procurement.


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No Comments

  1. kk

    December 11, 2016 at 12:36 pm

    i dont like this decision

    Reply
  2. kk

    December 11, 2016 at 12:36 pm

    i dont like this decision

    Reply
  3. avinash

    December 12, 2016 at 7:48 pm

    What will the Indian farmers do ? These kind of decisions will lead to fall of agriculture sector and total dependance of foriegn imports.

    Reply
  4. avinash

    December 12, 2016 at 7:48 pm

    What will the Indian farmers do ? These kind of decisions will lead to fall of agriculture sector and total dependance of foriegn imports.

    Reply
  5. stallionjeet singh

    December 15, 2016 at 10:19 am

    where are their buffer stocks gone ?

    Reply
  6. stallionjeet singh

    December 15, 2016 at 10:19 am

    where are their buffer stocks gone ?

    Reply

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