India govt considering raising wheat import duty.

The government is considering raising import duty on wheat from the current 20 per cent to discourage cheap shipments and give positive price signals to farmers in the ongoing rabi season. Harvesting of the wheat crop has begun in some states like Gujarat and will pick up pace after the Holi festival. There is no concern about wheat production. Even if we reach at last year’s level, that would be sufficient to meet domestic demand. We have enough buffer stock. But the issue is how we protect farmers and ensure they get at least the MSP. Wheat imports are not taking place even at 20 per cent import duty. Still, a proposal to raise customs duty on the grain is being discussed as the government does not want local prices to come under pressure during the peak harvesting period.