Govt to impose 50 pc customs duty on wheat

After Finance Minister Yashwant Sinha made a statement on import of wheat for lack of storage capacity, members belonging to the Congress, Left parties, Samajwadi Party and other parties protested against the import of wheat.

Congress MP Mani Shankar Aiyar said that the caretaker BJP Government took a decision on the migration package for telecom companies, but did not find time to address crucial issues for the farmers.

Deputy Speaker P M Sayed said under rules of the House no question could be asked on a statement made by a Minister. The Opposition continued to angrily protest and Congress members staged a walkout since the chair was not inclined to change the ruling. Basudev Acharia of the CPI-M demanded a debate on the issue.

Sinha had earlier stated that the availability of relatively cheaper import of the offtake from the stocks held for the Central pool by the Food Corporation of India had been low, despite liberalisation done through the open market sale scheme.

Between May and November this year, almost 15 lakh tonnes of wheat had reached Indian ports. The landed cost of wheat was much lower than the open sale rate fixed for the FCI.

He said if the current situation continued, it was estimated that there would be excess stock of over 100 lakh tonnes with the FCI by April next year over and above the minimum buffer norm of 40 lakh tonnes.

Sinha said the carrying cost of foodgrains for FCI was heavy, estimated at around Rs 1,600 per tonne per year. Carrying the excess stock would impose a massive financial burden on the Government which would be detrimental to the economy.

He said the duty was being imposed with a view to rectifying the situation and stimulating the offtake from the Central pool.

The Minister said a notification seeking to amend the relevant entries in the first schedule to the Customs Tariff Act, 1975, by invoking emergency powers under the Act was being issued.

A resolution seeking the Parliament’s approval to the notification shall also be moved shortly, he said.

Opposition members in the Rajya Sabha were agitated over the Government’s move on wheat imports and many alleged it was aimed at favouring a section of traders and harmed consumers’ interests.

In a frontal attack, Congress member Suresh Keshwani alleged the Government had deliberately allowed import of wheat even in the face of a bumper crop to favour a lobby of importers. Agitated members from Congress, Left parties and the Janata Dal (S) asked the Government to divulge names of businessmen who had gained from the wheat imports prior to levying of import duty.

Veteran Congress leader H Hanumantappa asked the Government to explain whether this move would not dissuade the wheat growers from cultivating the crop.

He said that wheat was turning a least profitable crop and the imports would further reduce the farmer’s interest in its cultivation.

Gurudas Dasgupta, CPI(M), warned the Government of diminishing foodgrains production as the import and export of crops was promoting the cultivation of cash crops in the country. He said the Government had acted against the interests of the poor people by importing the wheat. Several members demanded setting up of the House committee to look into the entire dynamics of wheat imports. Minister of State for Finance Dhananjay Kumar tried to convince the members that the entire exercise was aimed at helping the farmers. However, under a barrage of allegations and queries from the Opposition benches, the Minister agreed to give a detailed reply later.