Govt Plans To Reduce Import Duties On Wheat, Chana To Tame Food Inflation

New Delhi, Dec 13 (KNN) The government is contemplating various options to rein in food inflation which includes lowering of import duties on wheat and chana to boost domestic supplies and foretell spike in prices, reported FE.

“Centre is keeping a close watch on the wheat prices and all possible measures are under consideration to bring down the prices,” a source told FE.

As global prices have softened traders are of the view that by reducing in import duty on wheat the government should allow private players to buy wheat.

Last week the government announced duty-free imports of yellow peas which are used as a substitute for chana until March 31 next year to cool prices of pulses.

Retail inflation in pulses category rose to 20.23 per cent in November while that of chana reported at 13.05 per cent.

Traders said reduction in chana import duty may improve domestic supplies till the new harvest arrives by April.

In December, 2019, the government had imposed a minimum import price of Rs 200/kg of all varieties of peas – yellow, green, dun and kaspa and had fixed an annual quota of 0.15 MT for curbing cheaper imports and boost domestic prices.

Sources told FE that with the farmers’ cooperative Nafed has about 2 MT of buffer would be sufficient to carry out selling chana under Bharat Dal initiative and offloading the pulses variety in the open market for purchase by bulk buyers till new crops commence arriving in the market by April next year.

(KNN Bureau)