India is considering resuming wheat imports from Russia after a hiatus of six years in order to replenish dwindling reserves and control prices, a source told the Economic Times.
India is planning to scrap a 40 percent tax on wheat imports this year. This move will open the doors for private traders and flour millers to purchase from top exporter Russia, although it will be in limited quantities, another source told Reuters.
India could also start importing chickpeas from Russia if the need arises, a representative of the Ministry of Consumer Affairs, Food and Public Distribution of India, Nidhi Khare, mentioned at the All-Russian Grain Forum on Thursday.
The Agroexport Center under the Ministry of Agriculture reported that India's imports of agricultural products from Russia have soared by an impressive 76 percent in the first quarter when compared to the same period last year. In terms of monetary value, those supplies have exceeded a staggering $572 million.
As the new wheat harvest season approaches, the government is expected to postpone the elimination of the import tax until after June — coinciding with Russia's harvest — the source added.
Pramod Kumar, president of the Roller Flour Millers' Federation of India, told ET that the removal of the wheat import duty was the most effective method to guarantee an ample supply in the open market.
A government source familiar with the matter said the wheat import tariff should be lifted after June, allowing private trade to import wheat.
"In order to protect the interests of our farmers, the duty should be reinstated before the wheat planting starts in October," the source added.