India might cut or abolish wheat import tax: Food Secretary Sanjeev Chopra

According to the government, wheat output rose to a record 112.74 million metric tonnes in 2023, up from 107.7 million metric tonnes a year earlier.

India is considering cutting or abolishing import taxes on wheat, Food Secretary Sanjeev Chopra said on August 4, as the world's second-biggest producer struggles to contain prices.

India in June imposed a limit on the amount of wheat stocks traders can hold, for the first time in 15 years, to bring down prices.

"We have options like lowering or abolishing the wheat import duty and tweaking the stock holding limits to control prices," Chopra, the ministry's top civil servant, said. "The options are under consideration."

Chopra said there was no plan to import wheat from Russia or engage in a government-to-government deal.

Chopra said there was no plan to import wheat from Russia or engage in a government-to-government deal.

Wheat prices in New Delhi have jumped 12 percent in the past four months to Rs 25,174 ($303.85) a metric tonne, the highest in nearly six months, as traders say the production was hit by erratic weather.

According to the government, wheat output rose to a record 112.74 million metric tonnes in 2023, up from 107.7 million metric tonnes a year earlier. India consumes around 108 million metric tonnes of wheat annually.

But a leading trade body told Reuters in June that India's wheat harvest in 2023 was at least 10 percent lower than the government's estimate.