India could impose a 40% tariff in an attempt to lower wheat prices in the domestic market grain exports abolish and impose restrictions on grain stocks for traders, Reuters reports.
Recall that in May India restricted wheat exports as the grain harvest was severely affected by the drought. However, domestic wheat prices continued to rise. At the same time, wheat prices on the world market still exceed domestic ones, making wheat imports unprofitable for traders.
If the government removes wheat export tariffs, global wheat prices will fall and traders can then start importing Grains begin, particularly during the upcoming festival season when increased domestic demand leads to higher prices.
It is also noted that last week wheat prices in India reached a record 24 thousand Rupien pros Tonne (approximately $301,57 per tonne), meaning prices have risen by 14% since May (since the government's announcement of a grain ban).
However, market operators estimate that prices for Indian Wheat almost 30% below the price level of the global grain market, which Indian traders believe Indian grain is the cheapest in this segment.