India to Impose 10% Import Duty on Wheat Through March 2016
After a gap of eight years, India has imposed an import duty of 10% on wheat that will stay in effect until March 31, 2016, according to Finance Minister, Arun Jaitley.
In June, private Indian companies signed contracts to import 500,000 tons of high quality Australian wheat – the largest purchase in more than ten years, after excessive rain and hailstorms damaged the high-protein wheat varieties used to make pizza and pastas. But after seven seasons of bumper crops domestic stocks are high, and the decision to reinstate an import tariff was agreed upon by officials from the ministries of farm, food, trade and finance as a measure to curb imports and deter the importation of an additional 500,000 tons that had previously been expected.
In addition, it is rumored that the duty was enacted by the government to prevent the 52,500 tons of French wheat, rejected by Bangladesh for being low quality, from arriving at India’s ports.