India likely to extend wheat import tax beyond March-sources

By Mayank Bhardwaj
NEW DELHI, March 21 (Reuters) - India is likely to extend a
wheat import tax beyond March to shield its domestic farmers
from cheap imports particularly as wheat from the new-season
harvest will become available by the end of this month,
government sources said on Monday.
After consulting the food, farm and trade ministries, the
finance ministry now looks likely to extend the duty until
September, the sources, who requested anonymity because they are
not authorised to talk to the media, said.
India, the world's biggest wheat producer after China,
imposed an import tax of 10 percent in August last year,
reinstating it after a gap of eight years following big wheat
imports from overseas.
In October, the government raised the import tax, which
expires on March 31, to 25 percent.
Once the tax is extended, Prime Minister Narendra Modi's
ministers will review the decision in June when they will have a
clear idea about the size of this season's crop, the sources
said.
Food ministry spokesman N.C. Joshi declined to comment.
Indian farmers, who grow only one wheat crop in a year, will
start their harvests from end of March and April, after planting
the crop in October and November.
There has been some concern from farmers and experts about
the size of the crop because of wet weather.
But Farm Minister Radha Mohan Singh expects India
to harvest at least 92 million tonnes of wheat in 2016, almost
in line with the previous government forecast.
Output last year was 86.53 million tonnes, down from 95.85
million tonnes in the previous year, due to rains and hail
flattening the crop in February and March.
On March 1, wheat stocks at government warehouses totalled
16.9 million tonnes against a minimum requirement of 13.80
million tonnes.