The basic customs duty of 25% on wheat imports has been extended for three months and will be applicable till June 30, as per Finance Ministry notification. The Centre has taken this step in order to protect farmers during harvesting season and prevent domestic prices from crashing. Last year in October, the basic customs duty was increased from 10% to 25%.
The Agriculture Minister Radha Mohan Singh had earlier this month pointed that the Centre may not allow the import duty on wheat to lapse. The minister stated that reduction in import duties on wheat would lead to lowering of domestic wheat prices that would add to farmer distress.
Lower import duty on wheat would lead to a fall in wheat prices in the domestic market and farmers will incur heavy loss while traders will purchase from farmers at lower price. Farmers in the country, specifically in several districts of Maharashtra and Tamil Nadu, have been hit by severe drought and are suffering huge crop losses.
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