Traders in deals to import 600,000 tn wheat amid talks of duty hike.

Indian traders are likely to have contracted import of about 600,000 tn of wheat from Ukraine and Russia in the past few weeks, spurred by a likely rise in prices and talks that the government may raise import duty. Traders have contracted (import of) a total of 12 vessels of wheat in the last few weeks in a range of $200-$216 a tn, CIF (cost, insurance, freight), adding that consignments are likely to reach by the end of October. One vessel typically contains 50,000-55,000 tn of wheat. Two vessels, however, are said to have been diverted to other destinations. There is speculation that the government may double the import duty onwheat from 10% as of now, to prop up domestic prices and encourage higher sowing in the rabi season that starts October. Imported wheat is largely consumed by flour mills in southern India, as transporting the grain from the north is costlier than importing the commodity from the Black Sea region.