'Custom duty on atta should not be abolished'
The government's plan to scrap customs duty on wheat flour (atta) from the current 30 per cent has not gone down well with the millers who feel the move would adversely affect the industry.
By PTI |
NEW DELHI: The government's plan to scrap customs duty on wheat flour (atta) from the current 30 per cent has not gone down well with the millers who feel the move would adversely affect the industry.
"We do not want that wheat flour should be imported. It will directly affect the industry," Roller Flour Millers' Federation President Prem Gupta said.
The affect would be more felt by millers in the coastal belt, he said, adding the Federation has made a representation to the government on this issue.
The food ministry is likely to take up a proposal to the Union Cabinet soon for bringing down customs duty on wheat flour to zero per cent. The move would help in reduction in prices of wheat flour with a rise in supply in the country, a government official said.
Atta prices are currently ruling in the range of Rs 12-15 a kg in the retail market in the national capital.
Gupta said though there was no import parity at present as wheat prices in international market were high, but felt that things could change if domestic wheat prices increase.
Echoing his views, the Association's Secretary Veena Sharma said the move was not in the interest of flour millers.
"There is already a lot of unutilised milling capacity in the domestic industry," she said, adding any decision to import wheat flour would lead to closure of mills.
Sharma said the Federation has proposed that the government should provide wheat to millers who would charge 95 paise per kg for processing. She said there were 1,000 flour mills in the country with an average capacity of 110 tons per day.
"We do not want that wheat flour should be imported. It will directly affect the industry," Roller Flour Millers' Federation President Prem Gupta said.
The affect would be more felt by millers in the coastal belt, he said, adding the Federation has made a representation to the government on this issue.
The food ministry is likely to take up a proposal to the Union Cabinet soon for bringing down customs duty on wheat flour to zero per cent. The move would help in reduction in prices of wheat flour with a rise in supply in the country, a government official said.
Atta prices are currently ruling in the range of Rs 12-15 a kg in the retail market in the national capital.
Gupta said though there was no import parity at present as wheat prices in international market were high, but felt that things could change if domestic wheat prices increase.
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Echoing his views, the Association's Secretary Veena Sharma said the move was not in the interest of flour millers.
"There is already a lot of unutilised milling capacity in the domestic industry," she said, adding any decision to import wheat flour would lead to closure of mills.
Sharma said the Federation has proposed that the government should provide wheat to millers who would charge 95 paise per kg for processing. She said there were 1,000 flour mills in the country with an average capacity of 110 tons per day.
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