India is unlikely to import more wheat in the coming weeks, according to a report, as global prices surge and concerns about a potential 10 percent import duty grow.
In June, India’s government said it was considering imposing a 10 percent import duty on wheat to curb shipments and liquidate poor-quality grains. Before the import duty would be imposed, the concerned ministry and departments must be consulted. If the duty is approved, it will help the domestic industry, which has been facing challenges associated with the excess stocks.
Despite surplus stocks, Indian flour millers and global trading companies closed deals to import 500,000 tons of Australian wheat since March. This is the biggest amount in more than a decade, despite surplus stocks in India. The imports were made because of damage to high-protein wheat crops after unseasonal rains and hailstorms this year in wheat-growing states Madhya Pradesh, Rajasthan, Gujarat and Maharashtra.
Wheat production in India, the world’s second-biggest grower, is estimated to have declined to 90.78 million tons in 2014-15, compared with the record production of 95.85 million tons in 2013-14.