Government extended the 25 percent import duty on wheat on 29th March 2016 till June month. Government extends it to curb imports on domestic production is to rise over 8 percent on this year.
The wheat production is to increases by 8.42 percent to 93.82 million tons in this 2015-2016 year. The Central Board of Excise and Customs (CBEC) said that 25 per cent duty on import of wheat will continue beyond March 31, up to June 30, 2016.
There is also 40 percent import duty on basic customs like Ghee Butter and Butter Oil. This duty is extended by six months to 30 September. The Government has surplus stock in god owns and harvesting of the rabi crop has started. That’s why the Government has extended the wheat import duty.
Finance Ministry said in last October that, “In view of the continued fall in international prices of wheat and the anticipated adverse impact of increased imports during the first half of this financial year, basic customs duty on wheat has been increased from 10 per cent to 25 per cent for a period up to March 31, 2016.”
The nodal agency for procurement and distribution of food grains Food Corporation of India (FCI) has set a target to purchase 30.5 MT this year from farmers. The Food Corporation of India (FCI) has sold 7 MT of wheat through open market operations.
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