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The government has no plans to raise import duty on wheat, sugar, or edible oils as of now. A fall in prices of the commodities had led to speculation of hike in import duties. In March, the government had imposed 10% duty on import of wheat to stem the fall in domestic prices.

The Centre has procured 3.6 million tonne of wheat from Uttar Pradesh for the 2017-18 marketing year (Apr-Mar), a whopping 347% higher than the previous year. Wheat procurement has almost ended in all states, barring Rajasthan, where the government has extended the purchases till Jun 30. Overall, the Centre has purchased 30.6 million tonne wheat across the country, up 33.5% from a year ago.

Chicago wheat futures slid on Monday as the market took a breather after rallying around 5 percent in the last two sessions on the back of dry weather hitting U.S. yields. Chicago wheat climbed to its highest in almost a year at $4.68-1/2 a bushel on previous close as dry weather threatened to reduce U.S. spring wheat crop production. Reports of disappointing yields in early harvesting of hard red winter wheat provided additional support. There have been weather concerns for corn as well as spring wheat in the U.S.

Wheat prices on the Chicago Board of Trade are likely to rise 10-15% to $5 per bushel in a year. The area under wheat has reduced in the US, leading to lower growth in stocks, while in the European Union, yields are not expected to reach the average of recent years due to unfavourable weather. On a global scale, the stocks-to-demand ratio for wheat has reached 33%, which Rabobank said was too high, adding that a high ratio would dampen prospects of a significant recovery in global wheat prices in the coming season.