Mumbai:
The government has allowed import of 20 lakh tonnes
of wheat at zero customs duty, in addition to the 38.30
lakh tonnes that the public sector State Trading Corporation
is importing. The imports are being channelised through
the Food Corporation of India and will continue till February
28, 2007.
The
imports are aimed at meeting the shortfall in wheat procured
for the public distribution system (PDS). The imports
will be allowed only through Chennai, Tuticorin, Cochin
and Vishakhapatanam ports, the Directorate General of
Foreign Trade said in a notice.
In
addition to this, other state-owned firms like MMTC Ltd
and PEC Ltd are also importing 40,000 tonnes of wheat
each for private traders at five per cent customs duty.
Wheat
imports are being made to check prices and meet the projected
shortfall in procurement by FCI for the PDS. The government
had targeted procurement of about 160 lakh tonnes of wheat
by July 1 this year, but has managed to buy only 92 lakh
tonnes so far.
The
Centre has also decided to allow state governments to
put caps on the amount of wheat and pulse stocks individuals
or traders can hold in order to stop hoarding. The cabinet
also decided to lift restriction on inter-state movement
of these items.
A
government statement said the cabinet took the decision
after some states sought powers under the Essential Commodities
Act, 1955, to stop hoarding of wheat in anticipation of
higher prices.
Wheat
prices have been rising due to poor output while pulses
prices have been rising because of a shortage in supplies
from a major exporting country.
The
order will be effective for six months.
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