India has imposed limits on wheat stocks that traders can hold, and it could eliminate or reduce the import tax on grains to keep prices low, a senior government official said on Monday to the press.
Wheat prices in India, the world’s second-largest producer of the grain, have risen in recent weeks due to concerns over supplies.
“Imposing limits on stocks was only one option. We have many other tools to ensure that wheat prices do not rise abnormally,” Sanjeev Chopra, Secretary of State for Wheat, told reporters. ‘food.
The government may consider other options such as reducing import duties or allowing duty-free imports, he added.
New Delhi imposes a 40% tax on wheat imports. The reduction could allow private traders and millers to source from producers such as top exporter Russia for the first time in six years.
The imports would help India replenish depleted reserves and contain prices that have surged after three years of disappointing harvests.
There is no shortage of wheat in the country, Mr. Chopra said.
Wheat stocks in state warehouses fell to 7.5 million metric tons in April, the lowest level in 16 years, after the government was forced to sell more than 10 million tons, a record, to flour millers and biscuit manufacturers in order to control prices. As of April 1, 2023, wheat stocks in state warehouses stood at 8.2 million metric tons.
India has banned wheat exports in 2022 and there is no proposal to lift the ban on exports, Chopra said.
Furthermore, there is no proposal to lift restrictions on sugar and rice exports, he added.
India is the world’s largest exporter of rice and second largest producer of sugar.
