India Imposes Wheat Stock Limits, Considers Reducing Import Tariffs to Curb Rising Prices

India has imposed limits on the wheat stocks that traders can hold, as wheat prices have been rising in recent weeks due to supply concerns.
The government may consider reducing or abolishing the 40% import duty on wheat to allow private traders and flour millers to import the grain, potentially from major exporters like Russia.
This is aimed at replenishing India’s depleted wheat reserves and keeping domestic prices under control.
There is no shortage of wheat in the country, but stocks in state warehouses have dropped to a 16-year low after the government had to sell record amounts to control prices.
India banned wheat exports in 2022 and has no plans to lift the export ban, nor the export curbs on sugar and rice.
The government says it has various tools at its disposal, including reducing import duties, to ensure wheat prices do not rise abnormally.