The government is likely to increase import duty on Wheat to 20-25 percent from 10% to curb cheap shipments and give positive price signal to farmers who will start sowing winter crop after the Diwali festival, an official source said.
In March, the government had imposed 10% import duty on Wheat to contain sharp fall in local prices in view of the bumper crop of 98.38 million tonnes in 2016-17 crop year (July-June).
The trade data showed that private traders imported about 8.5 lakh tonnes of Wheat since April at 10% import duty. Another 1.5 lakh tonnes of shipments are expected to arrive.
Global prices were depressed for last few months, but there has been a spurt in rates in anticipation of the lower crop in Australia. Even domestic rates have started inching up, the data showed.
In March, the government had imposed 10% import duty on Wheat to contain sharp fall in local prices in view of the bumper crop of 98.38 million tonnes in 2016-17 crop year (July-June).
The trade data showed that private traders imported about 8.5 lakh tonnes of Wheat since April at 10% import duty. Another 1.5 lakh tonnes of shipments are expected to arrive.
Global prices were depressed for last few months, but there has been a spurt in rates in anticipation of the lower crop in Australia. Even domestic rates have started inching up, the data showed.
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