Govt likely to raise Wheat import duty to 40%
Commodity Online | April 24 2019
UPDATED 15:11:07 IST

Short-Term Risk Rising but Trend Remains Very Bullish

Retail Traders & Investors Squeezed to Buy High-Risk Assets Again

LME starts publishing off-warrant stocks data

Metals extend gains; oil prices trend higher despite increase in inventories

Metals rally as risk aversion takes hold; oil prices steady ahead of inventories report

The government is likely to raise the import duty on wheat from the current 30% to 40% to rule out any possibility of cheaper imports amid the harvesting of the new crop.

The import duty increase will force flour millers to buy wheat from FCI, which is set to offload stocks rather than source the grain from other countries.

The Election Commission (EC) is likely to clear the proposal soon to increase the import duty on wheat to 40% after the plan was approved by a panel of secretaries last week, sources said, Financial Express reported.

The Centre is expecting to buy 38-40 million tonne of wheat this year, after which the stock with FCI may reach to about 58 million tonne by end of May.

India’s wheat production is estimated at record 99.12 million tonnes in 2018-19 crop year (July-June).