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On wheat Government hikes the import duty to 20%

wheat On wheat, the government has raised the import duty to 20% which is the double of the earlier rate. To give support to farmers, the move has come in to control the incoming cheap shipments.

By the center, an import duty of 50% on peas was imposed also for curbing the cheaper shipments coming in from countries like Canada.

As per a notification by the Central Board of Excise and Customs (CBEC), it tolds that it looks

  • from present Nil rate to 50%, increase rate of basic customs duty on Peas, (Pisum sativum)
  • from 10% to 20% increase rate of basic customs duty on wheat

As the crop was excellent, so in March 2017, a 10% import levy on wheat had been put by the government to stop the fall in domestic prices. In 2016-17 (July-June), the output was 98.38 million tonnes.

As more production will check the fall in price, so by this move, the government wants to boost the morale of farmers to grow wheat in more area. With the new import duty on wheat, the farmers should get a positive signal as the planting of Rabi crop has started.

Due to a bumper crop last year, the prices were low and the farmers who grew pulses (Kharif season) had moved to other crops. The wheat farmers also don’t walk the same path and the center wants to make sure.

In 2016-17 crop years, India had a bumper crop of pulses with a record production of 22 million tonnes. By this production, the domestic prices fell below the MSP level. In last fiscal also around 5 million tonnes of pulses were imported.

With an intention to reduce the shipments and push up the domestic prices, the import duty on peas has also been put. Imposing restrictions on the quantity of import of pulses like tur, the government has also taken measures.