With the intent of restricting overseas purchase of wheat and ensuring that the prices of domestic wheat does not come under pressure, the government has hiked the import duty on wheat imports to 40 per cent from 30 per cent, reports Business Standard.
This development comes at the backdrop of India expecting a record harvest output of wheat this year. The country's wheat production this season might cross 100 million tonnes, an all-time high. The output stood at record 99.70 million tonnes in the 2017-18 crop year (July-June).
The Central Board of Indirect Taxes and Customs (CBIC), which is empowered to hike or lower the import duties on sundry products has hiked the custom duty through a notification in this regard.
On similar lines, last year (2018) also, the CBIC had hiked the import duty on wheat to 30 per cent from 20 per cent.
As part of its decision to fix minimum support price (MSP) at 1.5 times the production cost, the government has adjusted wheat's MSP (the price at which it buys from farmers) at Rs 1,840 per quintal, up from Rs 1,735 a year earlier.
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