India could scrap a 40% duty on wheat imports and cap the amount of stocks traders can hold to try to dampen record-high domestic prices, government and trade officials told Reuters. “We are exploring all possible options to bring down the prices,” said a senior government official who held a discussion with industry officials last week.
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If the government does remove the duty, and international prices also fall, then traders say they could start importing, especially during the upcoming festival season, when higher demand typically drives domestic prices higher. “If global prices fall by another 20% and Indian prices continue their rally, then maybe, sometime after a few months, imports might become feasible,” a trader told Reuters. India last imported wheat in its 2017-18 fiscal year (April to March).
The country’s trade ministry said it would restrict the export of some wheat-derived products like finely milled “maida” and semolina from Aug. 14, with only an inter-ministerial committee allowed to clear their shipment, though shipments of the items are generally small.
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