Saturday, August 26 2006 11:46 Hrs (IST) - World Time -

New Delhi: Facing massive shortages in procurement of wheat for public distribution system, the Government Friday (25Aug, 2006) allows import of an additional 20 lakh tonnes of the commodity at zero customs duty.

The imports will be made by state-run Food Corporation of India by February 28, 2007, the Director General of Foreign Trade says in a public notice.

As per the notice, the imports will be allowed only through Chennai, Tuticorin, Cochin and Vishakhapatanam ports, the notice says.

This 20 lakh tonnes of wheat is addition to the 38.30 lakh tonnes of the commodity that public sector company State Trading Corporation is importing at zero-duty. Another government-owned firm MMTC Ltd is also importing wheat for private traders at five per cent customs duty.

The wheat is being imported to check prices and meet the projected shortfall in procurement by FCI for the Public Distribution System. The Government had targeted to procure from farmers about 160 lakh tonnes of wheat by July 1 to maintain buffer stock for PDS, but has managed to buy only 92 lakh tonnes so far this year. The remaining would have to be managed through imports.