India removes import duty on wheat

09/12/2016,

The Government, on 8 December, eliminated the 10 percent import duty on wheat with immediate effect. The tax had already been reduced from 25 percent to 10 percent on 23 September (FPMA Food Policies). The recent move aims to boost domestic availability and curb prices, which have recently increased amid worries of reduced supplies due to a drawdown in stock levels, while no new domestic supplies are due to enter the market until March next year when harvesting of the 2017 main Rabi crop will begin. The Government had already announced, on 4 November, plans to release increased wheat quantities through the Open Market Scheme. It also revised upwards, on 15 November, the Minimum Support Prices (MSP) for 2017 winter Rabi crops, including wheat (FPMA Food Policies), to boost plantings.

Country: India