About 2.7 million tonnes (MT) of wheat has been imported from Australia, France and Ukraine so far this fiscal and an additional 1.2 MT of grain is expected to arrive by February end. However, traders have not signed any import deals for wheat delivery beyond March as they are skeptical that the government may re-impose customs duty on the grain when the harvesting of the new crop starts from April 2017.
Last year too, the private flour millers had purchased about 5 lakh tonnes (LT) of wheat from Australia for the first time in a decade. This step had been taken due to sluggish supply of domestic high protein wheat and lower international prices.
Wheat is being imported at a lower price than the domestic market. Though international prices of wheat have gone up slightly of late, but they are still competitive. For instance, Ukraine wheat for delivery at Tuticorin is costing Rs 1,670 per quintal and Australian wheat at Rs 1,740 per quintal. The grain is being sold in Delhi as high as Rs 2,124 per quintal.