Indian flour millers demand reduction of wheat import duty to 5-10%

The Roller Flour Millers’ Federation of India has urged the government to reduce the import duty on wheat from 40% to 5-10%, arguing that this move would help flour millers in southern India, where wheat shortages are becoming a concern, and stabilize prices in the domestic market. According to the federation’s president, Navneet Chitlangia, such a decision could significantly improve wheat availability and curb market volatility.

Speaking at the event titled “The Future of Milling: Vision 2030 & Beyond” in Panaji, Goa, Chitlangia emphasized that the government should reconsider the duty after completing wheat procurement. He suggested that even the import of 2-3 million tonnes of wheat could ease concerns about low domestic wheat stocks and help stabilize the market.

The federation has repeatedly approached the government, requesting a reduction in the duty to prevent further price hikes. Wheat prices in India have surged significantly in recent years, with the Consumer Price Index-based inflation for wheat reaching 8.8% in January 2025. Despite these pressures, the government has maintained the import duty at 40% since April 2019.

According to the federation’s estimates, India’s wheat production for the current rabi season (2024-25) could reach 110 million tonnes, exceeding last year’s 106 million tonnes. The government aims to procure 31 million tonnes of wheat for the central pool, while stocks at the beginning of March already surpassed the buffer norm of 7.46 million tonnes.

The federation also proposed the creation of a Wheat Board, similar to the Makhana Board announced in the Union Budget 2025-26, to promote research and support the development of farmers and the processing industry. Meanwhile, Food Secretary Sanjeev Chopra assured that the government has sufficient wheat reserves for market interventions and urged the federation to ensure that the benefits of the Open Market Sale Scheme (OMSS) reach consumers effectively.

Tags: restrictions, wheat, India, flour