Govt allows duty-free wheat import till Feb 28

The government granted a two-month extension for duty-free wheat imports by private traders till February 28.

A notification to this effect was issued by the finance ministry late on Thursday. Duty-free wheat imports by private traders were earlier allowed till December 31.

In September, the government had cut the import duty on wheat to nil from 5 per cent till December 31 to increase availability of the food grain and keep prices under check.

Wheat prices rose to a record Rs 1,200 per 100 kg last month on tight supplies. Though prices have eased to Rs 1,125 per 100 kg in Delhi, they are still over Rs 100 higher than last year.

Meanwhile, under the Open General Licence, importers will still be allowed to import wheat at 5 per cent till March 31. From April 1, wheat import will attract a duty of 50 per cent.

India is importing wheat after a gap of 6 years to ward off a shortage due to low output. India's wheat output has been below 70 million tonne for the last two years due to adverse weather conditions before harvest.

This year, however, output may top 74 million tonne, as area under wheat cultivation is higher, Agriculture Minister Sharad Pawar said.