India to Reduce Wheat Stock Limit, No Plans to Abolish Import Duty
India will reduce the limit on the amount of wheat stocks that traders and millers can hold but it has no immediate plans to abolish the import duty on the grain, a top government official said, indicating sufficient local supplies.
New Limit on Wheat Stocks
- Traders, wholesalers, and big retailers will be allowed to hold only 2,000 tons of wheat against 3,000 tons allowed earlier.
Release of More Wheat Stocks
- India will release more wheat stocks into the open market if required to curb prices during the coming festive season.
Adequate Availability of Staples
- There is adequate availability of wheat, rice, and sugar in the country.
- Some unscrupulous elements are trying to take advantage of rumors about supplies.
Export Curbs and Stock Availability
- India banned wheat exports last year and non-basmati white rice this year.
- New Delhi capped sugar exports this year and is unlikely to allow mills to ship out the sweetener in the next season.
- Recent export curbs have helped India ensure adequate availability of staples.
Festival Demand and Stock Preparedness
- The government is fully prepared to meet festival demands for rice, wheat, and sugar.
Sugar Inventory and Crop Update
- The country’s sugar inventory stood at 8.5 million tonnes in August, sufficient to fulfill the requirement of more than three and a half months.
- September rains in Maharashtra and Karnataka have helped the sugar cane crop, addressing concerns about inadequate rains in August.
Edible Oil Prices and Import Duty
- Edible oil prices have come down in the last few weeks, tracking price movements in overseas markets.
- There is no proposal to raise import duty on edible oil.
India is taking measures to regulate wheat stocks and ensure sufficient availability of staples during the festive season. The government is also closely monitoring sugar inventory and crop conditions. Edible oil prices have decreased, and there are no plans to increase import duty. These steps aim to maintain stability in the market and prevent artificial shortages.
Reporting by Mayank Bhardwaj; Writing by Rajendra Jadhav; Editing by David Goodman and David Evans
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