Govt allows duty free imports of wheat, sugar and pulses: Pawar

New Delhi, June 22 (UNI) In the wake of rising prices of essential commodities, the Government today made it clear that the import of wheat, sugar and pulses by private parties would be duty-free on the pattern of imports by the State Trading Corporation of India (STC).

Speaking to reporters, Agriculture and Food Minister Sharad Pawar said that notification in this regard will be issued by the Commerce Ministry today or the latest by tomorrow.

He said the duty free sugar imports would be allowed upto September 2006 only, while the sugar imports would attract only counter-vailing duty (CVD). There is record production of sugar in the current year which is in the range of 220 to 225 lakh tonnes, sufficient to meet domestic demand and to check the prices.

''No export of sugar will be done till the beginning of next sugar season,'' Mr Pawar said.

He said that duty free import of wheat has been allowed as there was intense pressure from biscuit manufacturers and flour mills.

The Minister also told that from the next procurement season, the government will procure wheat at the prevailing market prices besides announcing the minimum support price to protect farmers from distress sale of their produce.

He said this year, private parties benefited from the reforms in purchase systems as the condition for bringing the produce to APMC Mandi for farmers was removed. The private parties bought the produce from their fields by paying more than the MSP.

''I am happy that farmers got better price for their produce, but I am sad as we could not procure enough for PDS. We don't want to repeat this situation next year,'' Mr Pawar said and added ''the situation will be different next year.'' Farmers capability is over. Now to break down prices, the biscuit manufacturers and flour mills are allowed to import wheat at zero duty level which may be at reasonable rate of Rs 9-10 a kilo, he added.

Mr Pawar said that ban on export of pulses will remain in force till March 31, 2007.

He said the Government has already asked NAFED and PEC to import pulses to maintain the price level.

Availability of pulses is limited that was why the exports were halted.

Mr Pawar said that some States have also asked for coarse grains to be distributed through PDS and the Government would consider that also.

The Minister observed that shortage of edible oils and pulses is a regular phenomenon.

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