India govt may hike import duty on wheat to 20-25%.

The government is likely to raise import duty on wheat to 20-25 per cent from 10 per cent to curb cheap shipments and give positive price signal to farmers who will start sowing winter crop after the Diwali festival. Several discussions have been held on tweaking import duty of wheat. Currently, global prices are depressed and increase in import duty of wheat will be worked out accordingly. A final call will be taken soon. In March, the government had imposed 10 per cent import duty on wheat to contain sharp fall in local prices in view of bumper crop of 98.38 million tonnes in 2016-17 crop year (July-June). As farmers start planting of rabi (winter) wheat crop from end of this month, the government wants to give positive price signal and encourage farmers to grow wheat in more area.