Flour mills have inked deals to import 8.25 lakh tonnes (LT) of wheat from Australia, France and Ukraine. These contracts were entered during the July-August period for delivery this year. Millers are importing wheat mainly due to low global prices and a likely shortfall in the domestic output by 5 million tonnes (MT).
Of the total quantities contracted, the shipment of 2.50 LT of wheat has already reached Indian ports and the balance is on the way. Last month, 60,000 tonnes of Australian wheat and 30,000 tonnes each of Ukrainian and French wheat landed at Tuticorin port in Tamil Nadu.
The millers could import more wheat if the government reduced the import duty on it to 10% from the existing 25% or remove it completely.