Southern flour mills worried over wheat import duty hike.

Roller flour mills in South India are worried over the hike in the wheat import duty as it makes them uncompetitive in the domestic market compared with their counterparts in wheat growing areas in the North. Reacting to the last week’s hike in Customs duty to 30 per cent, DK Gupta, President, Tamil Nadu Roller Flour Mills Association, said the hike has come as a surprise particularly because imports had not been happening in recent months when it was first doubled to 20 per cent in November last. Previously, mills had imported 50 per cent of their requirement at about INR 1,900 a quintal and blended it equally with domestic produce priced at about INR 2,100 for quality reasons. This also helped to average out the prices at about INR 2,000 which was viable for the roller flour mills in the South, where wheat is not grown. If the grain is moved from the North it costs INR 200 more for transport in addition to two per cent wastage. Traders in wheat growing areas can directly move processed wheat products South at more competitive prices. The hike in the name of protecting farmers is not justified, felt industry representatives. But wheat product prices will go up for the common man.