In a move aimed at improving the supply chain and responding to fluctuating market conditions, India's wheat millers have launched a campaign urging the government to lower import tariffs on wheat. The industry is feeling the pressure as rising domestic prices and competition in the global wheat market threaten their operational viability.
As it stands, India's wheat import duties are currently set at 40%, a level that millers argue is hindering their ability to source cost-effective wheat from international suppliers. The Indian wheat milling sector has been struggling to cope with a production shortfall amid the ongoing challenges posed by climate variability, labor shortages, and rising input costs. These factors have led to a surge in domestic wheat prices, further complicating the landscape for millers grappling with profitability.
Wheat milling associations are voicing concerns that unless the government intervenes by reducing import tariffs, they will be unable to maintain competitive pricing. The call for lower tariffs comes as the global wheat market demonstrates increased variability, with prices fluctuating based on weather events and geopolitical tensions affecting major producing countries. Millers argue that a reduction in tariffs could provide them with the necessary flexibility to source cheaper wheat options and stabilize their operations, ultimately benefiting consumers with lower prices.
Statistics indicate that the demand for wheat remains robust in India, yet domestic production figures have not kept pace with consumption needs. The situation has prompted millers to explore alternative supply channels, including international markets, where prices may be more favorable. This predicament is intensified by a series of poor harvests in the last few years, leaving millers at a crossroads.
In addition to tariff reductions, the wheat milling community is also calling for enhanced government support in terms of policy-making and measures aimed at improving crop yields. They believe that strengthening the agricultural framework could have a long-term positive impact on the wheat supply chain within the country.
The Indian government has yet to respond officially to the petition by the milling sector, but the issue is expected to gain traction as economic pressures mount. As millers continue their advocacy efforts, the outcome remains pivotal in shaping the future landscape of wheat supply and prices in India.
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Author: Rachel Greene
