The Hindu Business Line : Import of another 20 l tonne of wheat cleared

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Import of another 20 l tonne of wheat cleared

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STC to continue to float tenders; FCI to carry out the imports

Till date, STC has totally contracted 38.3 lt of duty-free imported wheat to meet the Government's PDS requirements.

New Delhi , Aug. 26

The Union Government has allowed import of another 20 lakh tonnes (lt) of wheat at zero duty for the public distribution system (PDS). This includes the four lt for which the State Trading Corporation of India (STC) had floated a tender on July 27, against which it ended up contracting 3.3 lt.

Till date, STC has totally contracted 38.3 lt of duty-free imported wheat to meet the Government's PDS requirements.

The Directorate-General of Foreign Trade's (DGFT) latest public notice, dated August 25, would basically allow import of an additional 16.7 lt at zero duty. That takes the total quantum of wheat to be imported on Government account since February to 55 lt.

Canalising Agency

The public notice has said that the latest 20 lt duty-free imports would have to be made by February 28 next. The imports would be allowed only through the Chennai, Tuticorin, Cochin and Visakhapatnam ports. Further, the Food Corporation of India (FCI) has been made the agency for carrying out the imports. This is as against the earlier imports for which STC was the sole canalising agency.

"The idea of making FCI the canalising agency is to avoid confusion. Since the Government has allowed wheat imports on private account at 5 per cent duty, it would enable STC and other parastatals (MMTC, PEC) as well to do such imports for roller flour mills and other commercial users. Henceforth, STC would continue to float the tenders on behalf of the Government, but it will transfer the title of the imported wheat to the FCI on high sea sale basis," officials told Business Line.

Wheat Stock

The decision to import up to 55 lt of wheat for the PDS is higher than the earlier plan to peg the quantity at 35 lt. The 20 lt extra import provision has apparently been made after a decision was taken last month by the Empowered Committee of Secretaries (headed by the Cabinet Secretary) to ensure an opening wheat stock of not less than 40 lt in the Central pool on April 1, 2007.

As on July 1, wheat stocks were 82.07 lt. With more than seven months to go, the addition of 55 lt tonne imports would facilitate an average monthly offtake of 13-14 lt, while still meeting the 40 lt opening stock target for April 1.

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