India cuts import taxes on wheat, palm oil, refined oils

India cuts import taxes on wheat, palm oil, refined oils

India has cut import taxes on wheat, crude palm oil and refined vegetable oils, a finance ministry order showed on Friday, as part of efforts to curb food inflation.

New Delhi lowered the wheat import tax to 10 percent from 25 percent and cut the import duty on both crude palm oil and refined edible oils by five percentage points to 7.5 and 15 percent respectively, the order on a government website, showed.

Wheat output in India, the world’s second-biggest producer, has fallen well below the peak of 2014/15, reducing stocks to the lowest level in nearly a decade and pushing domestic prices close to record highs.

Private trade in India has already imported about 600,000 tonnes of wheat in 2016, the most in nine years.

Traders had expected the government to reduce or even abolish the 25 percent import tariff to make imports cheaper and ease a domestic supply squeeze.

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