FLOUR POWER

Current wheat prices are justified, say flour millers. Will the govt cut import duty?

- SANJEEB MUKHERJEE

On September 13, the central government tightened the stock holding limit on wheat amid a renewed clamour for lowering the customs duty to enable cheaper wheat imports. However, flour millers say the concern over wheat prices is unwarranted and the grain is not overpriced.

Food Secretary Sanjeev Chopra, too, in a press conference on September 19 asserted that wheat prices were well under control. He dispelled rumours of a quick resumption of the open market sale scheme, saying a decision on that will be taken at an appropriate time. Chopra, assuring that prices of essential commodities won't jump during the critical festival months, said around 10 million tonnes of wheat were, according to reports received, still with traders.

Flour millers meanwhile warn that a knee-jerk reaction to open up imports or lower the import duty from the current 40 per cent to zero could send a negative signal to farmers, who are about to plant the new wheat crop in the next few weeks.

"Sowing of wheat this year could be bumper, given the extended monsoon and good water level in reservoirs. In such a scenario, if any attempt is made to unusually control prices, it might give the wrong signal to farmers," said a representative of a large flour miller.

Millers say wheat prices at the current levels of ₹2,700-2,800 a quintal are justified, given that the minimum support price (MSP) for the crop has been raised in 2024-25 (FY25). The cost of wheat for traders and stockists is almost the same as the current market price of wheat, which strengthens their argument.