India May Cut Wheat Import Tax To Boost Supply, Check Prices: Report

The government in June imposed a limit on the amount of wheat stocks traders can hold in an effort to bring down prices. The government is also offering wheat to bulk buyers such as biscuit makers to augment supplies in the local market.

The central government is considering cutting or even abolishing a 40% import tax on wheat and lowering a limit on the amount of wheat stocks millers and traders can hold, a government official said on Friday, as part of efforts to boost supplies.

"We have options like lowering or abolishing the wheat import duty and tweaking the stock holding limits to control prices," Sanjeev Chopra, the most senior civil servant at the food ministry, told reporters.

"The options are under consideration. The government is committed to controlling prices," Chopra said.