The government has allowed import of an additional 20 lakh tonne of wheat at zero customs duty as part of the measures to meet the shortfall for the public distribution system (PDS).The imports will be made by Food Corporation of India by February 28, 2007. The imports will be allowed only through Chennai, Tuticorin, Cochin and Vishakhapatanam ports, Directorate General of Foreign Trade (DGFT) said in a notice.DGFT said the public notice is being issued in accordance with the ad-hoc order issued by the finance ministry on August 14 for exemption of customs duty on import of wheat.The current 20 lakh tonne of wheat is in addition to the 38.30 lakh tonne of wheat State Trading Corporation is importing at zero-duty. State-owned firms MMTC and PEC are importing 40,000 tonne of wheat each for private traders at 5% customs duty.The government had targeted to procure about 160 lakh tonne of wheat from farmers by July 1 this year to maintain buffer stock for PDS, but has managed to buy only 92 lakh tonne so far.The government had, in February this year, allowed wheat imports after a six-year gap. Since February, STC has floated four tenders for import of 39 lakh tonne of wheat. Of this, 38.30 lakh tonne has been contracted from global suppliers like Swiss firm Agrico Trade and Australia's AWB.
