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Concerned over the Union government’s recent move to extend the 25 per cent import duty on wheat indefinitely, roller flour millers from South India have urged the Food Ministry to recommend withdrawal of the duty to the Finance Ministry to ease supplies and keep prices of the cereal in check.
Representatives of flour millers associations from states such as Tamil Nadu, Kerala and Karnataka met Food Secretary Vrinda Sarup recently and urged the Government to withdraw the import duty from August 1, as prices of the cereal have risen in recent months on supply concerns.
While the Agriculture Ministry has estimated wheat output at 94 million tonnes (mt), the trade estimates the crop to be lower at around 84 mt on a decline in acreage and unfavourable climatic conditions impacting the output. Also, a decline in procurement by government agencies, which at 23 mt is much lower than the targeted 30 mt, points to a lower crop output.
Millers in South India, which consumes around 5 lakh tonnes of wheat every month, depend on the high protein premium cereal from Australia for blending, to supplement the protein deficiency in the Indian wheat. “Imports will not affect stocks of domestic wheat held by FCI nor the domestic wheat prices. On the contrary they will help the roller flour mills to function smoothly and supply quality wheat products to all consumers at affordable prices,” said PK Ahammad, President, Kerala Roller Flour Millers Association, in the memorandum.
As Tamil Nadu has been facing constraints in wheat supplies, millers from the State have urged the Centre to move more quantities from the North to Southern states to ensure adequate supplies.
P Gunasekaran, President, TN Flour Mills Association, also urged the government to ensure that enough stocks were made available in needy districts such as Salem, Coimbatore and Madurai to enable millers to lift the wheat freely.
Millers from the South have also urged the Food Secretary to allow dedicated movement of wheat by FCI from Madhya Pradesh to southern cities, which has been stopped recently.
Fearing dumping of wheat products in South by millers in Madhya Pradesh, who have a price advantage and easy access to supplies, Karnataka millers sought steps to ease supplies.
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