Wheat Imports Rise by 27 pc in H1.

NEW DELHI: India has contracted to import a whopping 2 lakh tonnes of wheat--27 per cent more than in the entire 2009-10-- in the first half of the current fiscal but shipments are unlikely to take place soon as global prices are high, Roller Four Millers Federation of India said today.

Wheat imports were 1,58,000 tonnes last fiscal. "We have imported 2 lakh tonnes of wheat so far this fiscal at USD 280-285 a tonne," Federation President R K Garg told media at its 70th Annual General Meeting here.

Currently, there are no contracts being signed for imports as the international prices have skyrocketed, he said.

For instance, global prices of wheat have risen to USD 370 a tonne. So, it is unviable to buy wheat at this price level from the overseas market, he added.

Wheat prices in the international market have firmed up sharply since last two months, on supply concerns due to drought and wildfire in Russia, one of the world's biggest wheat producers.

At present, there is zero duty on wheat imports. Flour millers import high-protein variety of wheat, mainly from Australia, for usage in cookies and breads.

Garg further suggested that the government should keep open duty-free wheat import option to regulate local prices.

"Duty free import in the current scenario just provides an open alternate option for the miller and a regulating factor for the local trader/supplier," he said.

The quantity of wheat imports by the country has not been very significant for more than last two years and more over, the phytosanitary norms has been deterring bulk imports, he added.

India, the world''s second biggest producer of wheat, produced 80.71 million tonnes in 2009-10 crop year. It is targeting to harvest 82 million tonnes in the forthcoming 2010-11 crop year.

Source : economictimes.indiatimes.com