Centre has no proposal to alter wheat import duty, Keeping watch on prices

Amidst rising wheat prices and the demand for reduction in import duty by the industry, the government has said that there is no plan to change the import duty on wheat yet. A statement issued by the Union Ministry of Consumer Affairs, Food and Public Distribution said that the department is keeping an eye on the prices. Appropriate steps are being taken to control wheat hoarding and rising prices.

The prices of wheat are increasing continuously. Wheat has become costlier by 8 per cent in the last one month. Wheat prices have reached up to Rs 2700 per quintal. At the same time, the prices of wheat are continuously increasing in wholesale markets across the country. Meanwhile, there has been a demand from the industry to reduce wheat imports and the duty levied on it. At the same time, by issuing a statement on this, the government has made it clear that the government is not considering reducing the duty.

Wheat prices are rising in a situation when there has been record production of wheat in the country. According to the latest data of the Rabi season (2023-24) of the Central Government, 11.2 crore tonnes of wheat has been produced in the country. Despite this, the government procurement of wheat in the current Rabi marketing season (2024-25) has reached only 266 lakh tonnes, which is only four lakh tonnes more than 2023-24. For the current season, the government has fixed the minimum support price (MSP) for wheat at Rs 2275 per quintal. However, in Madhya Pradesh and Rajasthan, the purchase price of wheat remained at Rs 2400 per quintal due to the bonus of Rs 125 per quintal given by the state government. The stock of wheat in the central pool on June 1, 2024 was 299.05 lakh tonnes, which was 313.8 lakh tonnes on the same date last year.

Speaking to Rural Voice, Pramod Kumar Jain, President of Roller Flour Mills Federation of India, said that there is a shortage of wheat in the market. Due to which the prices of wheat are rising. He said that the government has also not been able to meet the target of wheat procurement this time. Many traders and farmers are stocking wheat in the hope of good prices. Due to which the price of wheat is increasing in the market. He said that if the situation remains the same, then the government will have to import wheat so that the demand of the industry can be met. Along with this, he also raised the demand of open market sale and reduction of import duty of wheat from the government.

There will be no shortage of wheat for schemes

The government has also said in its statement that there will be no shortage of wheat for any government scheme. The government says that the Food Corporation of India (FCI) has so far purchased 266 lakh tonnes of wheat. Wheat procurement season is now almost on the verge of ending. Wheat procurement has been completed in most of the states of the country. Whereas, wheat procurement is expected to be completed in the remaining states by the end of this month. Looking at the mandi arrivals, there is no expectation of any significant increase in wheat procurement in the month of June.