The contracts for future wheat imports are currently on hold, as global prices have significantly increased following an export ban in Russia, Uzbekistan and Kazakhstan.
International prices of wheat are currently hovering around $370 per tonne — much above the domestic prices which stands at $250 per tonne.
Russia has recently put a ban on wheat exports to ensure domestic supplies as production dropped in the country due to drought and wildfires. Uzbekistan and Kazakhstan have followed suit and banned exports till December, putting pressure on availability of wheat in the international market.
India, due to its government procurement policy, has wheat stocks 49 per cent more than the buffer stock norm. The government has 29.9 million tonnes of wheat, against a buffer norm of 20.1 million tonnes.
However, Indian millers have already contracted to import around 200,000 tonnes of wheat, 27 per cent more than 2009-10, in the first half of the current financial year. But the shipments are unlikely to take place soon as global prices have shot up, said the Roller Flour Millers Federation of India.
Wheat imports stood at 158,000 tonnes in 2009-10.
“We have imported 200,000 tonnes of wheat this fiscal so far at $280-285 a tonne,” federation president R K Garg told reporters at its 70th annual general meeting. At present, there is no duty on wheat imports.
Flour millers import the high-protein variety of wheat, primarily from Australia. Garg further suggested the government keep open the duty-free wheat import option to regulate local prices.
“Duty-free import in the current scenario just provides an open alternate option for the miller and a regulating factor for the local trader or supplier,” he said.
India, the world's second biggest producer of wheat, produced 80.71 million tonnes in crop year 2009-10. It is targeting to harvest 82 million tonnes in the coming crop year.
