Wheat Import Duty Cut: Flour Millers Seek Lower Rates for Supply

Panaji (Goa), Mar 3 (PTI) Flour millers' apex body RFMFI on Monday demanded that the government should consider reducing import duty on wheat at 0-10 per cent to enhance domestic availability and check price volatility.

At present, the basic custom duty on wheat is 40 per cent.

Addressing a press conference here, Rollers Flour Millers' Federation of India (RFMFI) President Navneet Chitlangia said the wheat crop situation is good in the country and there will be bumper production.

As per the Federation estimates, he said the production of wheat, which is grown in rabi season, is likely to rise to 110 million tonnes in 2024-25 crop year (July-June) from 106 million tonnes in the previous year on higher acreage and use of heat tolerant high yielding varieties.

As per the government estimates, India produced a record 113.2 million tonnes of wheat in 2023-24.

The Federation said its estimates have been lower than the government projection from the last 4-5 years.

Despite estimates of an increase in output, Chitlangia said the government should consider reducing import duties on wheat after the end of procurement season in June.

"We urge the government to assess the wheat availability situation after the end of this year's procurement season," he said.

The Federation's president said there have been some uncertainties in the market regarding domestic availability in the past few years because of climate change and other issues, leading to speculations.

Chitlangia pitched for reducing import duty, saying this will help in checking "market speculations and price volatility."

He said the government should fix import duties at 0-10 per cent and a small quantity of 2-3 million tonnes can be allowed on the southern ports.

Chitlangia argued that the duty cut would help end uncertainties related to domestic availability.

The Federation has made representation to the food ministry in this regard.

Chitlangia said the wheat buffer stock will be 10-11 million tonnes at the start of next month, slightly higher than the norm of 7.46 million tonnes as of April 1.

The Federation Senior Vice President Dharmendra batted for imports and said the industry does not want to be dependent on the government for wheat stock.

Wheat is grown in rabi (winter-sown) season. The harvesting will start from later this month.

The RFMFI Vice President Rohit Khaitan said the government should allow exports of wheat products without any conditions.

The RFMFI, established in 1940 under the Companies Act, represents the interests of the flour milling industry.

It has 1,800 members (directly and through state associations).

The two-day conclave 'The Future of Milling -- Vision 2030 and Beyond' is witnessing participation of more than 600 delegates from India and abroad.

The conference focuses on the themes of paramount importance to the flour milling industry.

These include food security and climate resilience; policy and infrastructure development; global best practices in wheat storage and logistics; technology and innovation in milling; value addition and market expansion; and digital transformation in flour milling.