Date:29/06/2006 URL: http://www.thehindubusinessline.com/2006/06/29/stories/2006062904660900.htm

Back Wheat import duty pegged at 5 per cent

Our Bureau

New Delhi , June 28

The Government on Wednesday notified a concessional duty of five per cent on wheat imports by private parties. This new rate, to be effective from June 28, will be valid till December 31, 2006, a Finance Ministry release said.

Till now, wheat was freely importable at 50 per cent customs duty. At the same time, the State Trading Corporation of India was allowed to import up to 35 lakh tonnes at nil duty on behalf of the Union Government for meeting the needs of the public distribution system.

The decision to allow private parties to import at five per cent — it was earlier being proposed at zero duty — is meant to boost availability in the open market and put a lid on prices. With landed prices at $200 per tonne, a five per cent duty would take the cost of imported wheat to around Rs 9.7 per kg, exclusive of port discharge costs and internal freight.