Roller flour mills want import duty on wheat to go.

Kochi, July 1: The Kerala Roller Flour Millers Association has requested the Centre to withdraw import duty on wheat, considering the supply shortage of the commodity in the wake of adverse weather conditions.

It is pointed out that the wheat output during the current season will fall short due to severe drought and unseasonal rains in growing areas. Since the shortage is estimated to the order of 5 to 6 million tonnes, it will affect the working of roller flour mills especially in South India, PK Ahammed, the association President said.

According to him, flour mills have no other options but to depend on imports to overcome this huge shortfall. The international wheat price is on the higher side and it is likely to go up further given the reported shortage of wheat output in India.

It may be recalled that the government had earlier allowed wheat imports at zero per cent customs duty. However, in view of the huge stocks at FCI godowns, the authorities imposed customs duty at 10 per cent with effect from August 7, 2015. Subsequently, the rate was increased to 25 per cent from October 19 in the same year because of fall in international prices.

The Association, therefore, urged the ministers of Finance, Commerce and Consumer Affairs to allow wheat imports without any duties from August 1 this year. The imports would not affect the stock of domestic wheat nor the prices, but will help roller flour mills to supply quality products at affordable prices, it said.

Source : thehindubusinessline.com