India has not planned to import wheat from Russia or another country under government-to-government deals, a senior official said on Friday, adding that there were “umpteen measures available” to keep prices of the grain under control.
Wheat is free for import by the private sector but this attracts a 40% tariff currently. The revised tariff came in force in April 2019, until when the duty was 30%. The government, however, is considering a cut in the import duty on wheat along with “higher stock-holding limits” to ease prices of the staple, Union food secretary Sanjeev Chopra said.
The official said all measures were being considered to keep food prices down, but there was no proposal to import wheat by any government agency.
Stock-holding limits prohibit traders from keeping large stockpiles of cereals so that they are forced to release them in markets to improve supplies, thereby helping to cool inflation.
The world’s second-largest grower of wheat imposed a ban on exports of the grain in May 2022, after searing temperatures trimmed output. This led to a steep fall in government’s purchases at 18 million tonne against a procurement target of 44 million tonne.
On July 20, India also banned export of non-basmati rice. The ban by the world’s biggest rice exporter came three days after Russia pulled out of the Black Sea grain deal that allowed Ukraine to ship wheat and a host of other staples to global markets, setting off worries of a food crisis.
An interministerial committee tasked by Prime Minister Narendra Modi to monitor prices, demand and supplies of essential items on a fortnightly basis to keep a tight check on food inflation is considering a raft of option, which includes a duty cut on wheat, a second person aware of the matter said, requesting anonymity.
Inflation in wheat stood at 12.37% in June, despite the ban on exports. Rice prices leapt to 11.78% in the same month.
Controlling inflation is a top priority for the Union government. High prices pose a challenge to growth and macroeconomic stability. Elevated food prices have hammered household budgets even as the ruling BJP-led government faces a general election in early 2024.
