Wheat traders told to declare imports

The government has made it mandatory for private wheat importers to declare the particulars of imports within seven days of receiving a consignment.

The provision was notified today under the Import of Wheat (Stock Declaration) Order 2006, which came into force on September 19. The order does not apply to wheat imported on government account for the Food Corporation of India (FCI).

According to the order, all wheat importers are required to submit a return to the Union and state government by the 10th of every month on stocks of wheat imported, released, and retained by him.

It also provides for the submission of returns to the Centre, by deputy commissioners of customs, at every port on receipt of any cargo containing imported wheat.

The Centre had earlier kept in abeyance the provisions allowing for removal of stock limits on foodstuffs (contained in orders dated February 15, 2002, and June 16, 2003) for a period of six months, with effect from August 29, 2006. This had enabled state governments to impose suitable stock limits on wheat and pulses and check hoarding.

The order issued for that purpose had also empowered the Centre and state governments to direct importers to declare the receipt of stocks of these commodities and stocks retained by them.

Several state governments have recently re-introduced stock limits on wheat and pulses held by private traders However, whether these limits apply also to the wheat-based industry, such as roller flour mills, is not clear yet.

The Roller Flour Millers' Association, which had its annual general meeting here today, pleaded to the government for a clarification on this aspect. They argued that stock limits should not be imposed on the wheat-based industry and flour mills as they needed to keep adequate stocks for operating their units for the next few months.

In any case, the quantities of wheat imported or contracted for import by private traders have been quite small so far. Trade circles reckon the total contracted imports so far to be only around 5 to 6 lakh tonnes.

But, they feel, wheat imports had become economically viable at the current domestic and international prices, especially after the waiver of import duty, and more imports could take place in the future.