The Hindu Business Line : Govt to `consider' allowing duty-free maize imports

"A request has been received from the poultry industry (to permit zero duty imports). We will seriously consider it," the Union Agriculture Minister, Mr Sharad Pawar, said at a press conference here on Wednesday. At the same time, he ruled out banning exports of maize, stating that any such move would amount to a "great injustice" to farmers.

Quota regime

Maize imports are currently governed by a tariff rate quota (TRQ) regime, under which up to five lakh tonnes (lt) can be imported at 15 per cent basic customs duty, with quantities above this charged to 50 per cent. The country's total maize production has risen appreciably over the last decade, touching a record 15.09 million tonnes (mt) in 2005-06, as against 8.88 mt in 1994-95 and 12.04 mt in 2000-01.

The current kharif season, however, saw output fall to 11.43 mt, from the 12.41 mt level of kharif 2005. The decline in kharif is expected to be partially offset during the rabi season, which so far has witnessed an increase in progressive acreage from 6.13 lakh hectares to 8.59 lakh ha.

Shortfall

The user industries still project a shortfall in domestic availability, compounded by high international prices on account of diversion of the crop for ethanol (bio-fuel) manufacture.

Maize prices at Nizamabad (a benchmark centre) are now ruling at around Rs 725 per quintal, against Rs 555 per quintal at this time last year. Of the total maize produced in the country, only a third or so is used for human consumption, with the poultry (seven mt), livestock (1.5 mt) and starch (1.5 mt) industries accounting for the rest.

As for wheat, Mr Pawar said that the present acreage trends and weather conditions indicated that the country would harvest a crop exceeding 74 mt, as against the 69.48 mt of 2005-06. "It looks we will have an extra 1.5 million hectares sown under wheat this time," he added.

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