India hikes customs duty on wheat to help domestic producers

In order to curb imports and protect the domestic industry, the Central Board of Indirect Taxes and Customs (CBIC) has hiked the basic customs duty (BCD) on wheat to 40 per cent from 30 per cent earlier.

This year India is likely to registered a significant growth in the country's wheat production and with an aim to safeguard domestic producers, the governments wants to curtail import of wheat. In May last year, the government had hiked BCD on wheat to 30 per cent from 20 per cent.

In line with its aim to double the farmer's income, the government has revised MSP (minimum support price) of wheat from Rs. 1,735 a quintal to Rs. 1,840. Earlier, the government had decided to keep MSP at least 1.5 times the production cost.

India's wheat production in the current season is expected to touch all time high (around 100 million tonnes) as against production of 99.70 million tonnes in the 2017-18 crop year (July-June).