The Centre’s decision to scrap import duty on wheat should be withdrawn immediately, farmer leaders from Punjab, Haryana, Madhya Pradesh, Uttar Pradesh and Outer Delhi--all members of farmers’ body Bhartiya Kisan Union (BKU)--have demanded.
Instead, a 40 per cent cess should be imposed on imports to prevent distress sale during harvest, they suggest.
“The decision taken at a time when many farmers have more or less completed their sowing is cruel and anti-people and will lead to distress sale during harvest,” said Ajmer Singh, State President, BKU Punjab, addressing a press conference on Tuesday.
Wheat farmers say that there was actually no shortage of the cereal in the domestic market and the scarcity was artificially created by hoarders. “Farmers have sold their wheat for Rs 1,200 per quintal to private buyers and it is now selling for much higher in the open market. The price has shot up due to hoarding which is what should be targeted by the government,” said Yudhvir Singh, National General Secretary, BKU.
The government has estimated wheat production at 93.5 million tonne for 2015-16, Lakhoval, pointed out, adding that even if the estimates were not fully met, production would be enough to meet the national consumption demand of 87 million tonne.
“The removal of import duty on wheat does not make much sense, apart from benefiting the Australian Wheat Board,” Lakhoval added.
The BKU has already written to Prime Minister Narendra Modi asking for imposition of 40 per cent import duty on wheat, but has not received any response.
The government had completely scrapped import duty on wheat earlier this month after reducing it to 10 per cent from 25 per cent in September.
Private millers have already imported more than 1.72 million tonne of wheat from Australia, France and the Ukraine this year since September.