Sellers divert India-bound wheat cargoes to Dhaka amid duty concerns.

Exporters have diverted three-four cargoes of wheat initially destined for India to neighbouring countries this month, due to thinning local demand and risk of an increase in import duty. At least two of the wheat shipments that are coming to India have been diverted to Bangladesh over the last couple of weeks. Buyers in the neighbouring country, which is facing a grain shortage this year due to drought, wiling to pay a premium to divert shipments on that were already on high seas to meet immediate requirements. Sellers more than happy to oblige, given the import duty-risk in India. The Indian government has been thinking over agriculture ministry’s proposal to double import duty on wheat to 20% to ensure prices remain firm during the planting season for the grain that started this month.