NEW DELHI, March 28 (Reuters) – India on Tuesday imposed a 10 percent import tax on wheat with immediate effect, government sources said, reinstating the tariff after a gap of nearly four months that saw large overseas purchases.
The government also imposed a 10 percent tax on pigeon peas, known locally as tur, after a crash in local prices.
Waves of farmers have stepped up local production of pulses to help the government cut a hefty import bill.
The duty was not expected to affect Canada’s exports of peas and lentils to India.
Read Also
Pulse Weekly: AAFC raise dry pea, lentil production numbers
Agriculture and Agri-Food Canada raised its 2025/26 production calls for dry peas and lentils from its July report. AAFC issued its latest monthly report on Aug. 20, and adjusted exports, domestic usage and ending stocks.
The Indian government wants to curb crop imports when Indian farmers are starting their harvest, said three sources directly involved in deciding on the issue. They declined to be identified as they were not authorised to speak on the matter.
Earlier this month, government sources had said New Delhi could impose a 25 percent import tax on wheat.
India, the world’s second-biggest wheat producer, lowered the import tax wheat to 10 percent from 25 percent last September and scrapped the duty on Dec. 8.
The permission for duty-free imports had encouraged private traders to buy more than 5 million tonnes of wheat since mid-2016 to meet a supply shortfall left by two years of drought.
Most flour millers and biscuit makers imported wheat from France, Ukraine and Australia.
Both large imports and forecasts of a bumper crop prompted the government to impose the tax, the sources said.
The farm ministry last month forecast wheat output at 96.64 million tonnes in 2017, up from 92.29 million tonnes last year.
