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Govt lowers import taxes on additional 400,000 tonnes of corn to 15%

10 Jul 2019 Evaluate

With an aim to offset a rise in the price of animal feed in India following a drought last year, the government has lowered import taxes on an additional 400,000 tonnes of corn to 15%. India, the world's seventh-biggest corn producer, had allowed imports of 100,000 tonnes of corn at the concessional tax rate in June.

As per the government, the additional 400,000 tonnes of imports were permitted at the same rate following a request from the poultry industry. The country normally imposes a 60% import tax on the grain, but an infestation of the fall armyworm, which devastated African crops in 2017, and dry weather in some areas have cut the country's corn output.

India was a major exporter of corn to southeast Asia until falling output and increasing demand from poultry producers and corn starch manufacturers turned it into an importer a few years ago. The switch in India's position cheered rival suppliers such as Brazil, Argentina and the United States, which have now replaced New Delhi in the southeast Asian market.

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