Centre reimposes 10% import duty on wheat and tur dal with immediate effect
The Minister of State for Finance said the decision was made in the interest of farmers and based on the projection for a record crop in 2017.
The Centre on Tuesday reimposed a 10% import duty on wheat and tur dal with immediate effect, PTI reported. Announcing the decision in the Lok Sabha, Minister of State for Finance Arjun Ram Meghwal, said the move was taken in the interest of farmers and based on the projection for a record crop in 2017.
On December 8, the Bharatiya Janata Party-led government had slashed the duty to increase domestic supply and stabilise retail prices.
Meghwal said a notification dated March 17, 2012, has been amended to “impose basic Customs duty of 10% on wheat and tur, with immediate effect’’. Considering the current import numbers, Meghwal said the move translates to Rs 840 crore in revenue, by checking a decline in wholesale prices.
Wheat supplies have started arriving in markets in Madhya Pradesh, Rajasthan and Gujarat. The Centre expects 2016-2017 wheat production figures to touch a record 96.64 million tonnes, against the 92.29 million tonnes generated in 2015-2016. Meanwhile, kharif (summer) tur dal crop production is estimated to be 4.23 million tonnes compared to last year’s 2.56 million tonne production.
The slashing of import duty last year had prompted private traders to buy more than five million tonnes of wheat to meet the supply shortfall in 2016, Reuters reported.