Twitter
Advertisement

Government allows duty-free import of maize up to 5 lakh tonnes to meet demand

With maize production likely to drop for the second straight year due to drought, the government has allowed state-owned PEC Ltd to import 5,00,000 tonnes of maize at zero duty to meet starch and poultry industry's demand

Latest News
article-main
FacebookTwitterWhatsappLinkedin

With maize production likely to drop for the second straight year due to drought, the government has allowed state-owned PEC Ltd to import 5,00,000 tonnes of maize at zero duty to meet starch and poultry industry's demand.

At present, maize attracts 50% import duty. The zero duty concession on the overseas purchase of maize has been given under the tariff rate quota (TRQ) following representation from poultry, starch and animal feed industry.

"The Commerce Ministry has allowed import of 5,00,000 tonnes of non-genetically modified (GM) maize at zero duty under the TRQ. PEC has been made canalising agency to undertake the import," a senior government official said.

A circular in this regard was issued during December-end. Accordingly, PEC has floated a global tender for import of 3,20,000 tonnes of non-GM yellow maize to boost domestic supply from next month, the official said.

Also read: Government approves Rs 5,083 crore drought relief to Madhya Pradesh, Maharashtra

The non-GM maize is mostly available in Europe. PEC will import maize at zero duty and further supply it to the industry. India had last imported maize in 1991.

As per the tender document, bids are to be submitted by January 11 and the decision on tenders will be taken on the same day. The bids will be valid upto January 14.

Imported yellow maize should reach Indian ports - Kandla Magdalla, JSW Jaigarh, Vishakhapatnam, Tuticorin and Kolkata by February.

Bidders should bid for a minimum quantity of 70,000 tonnes for delivery at JSW Jaigarh, 40,000 tonnes for Kandla and Vishakhapatnam, 30,000 tonnes for Magdalla, 35,000 tonnes for Tuticorin and 25,000 for Kolkata. Bidders may bid for the quantities at any/all ports, the PEC said.

Also read: Maharashtra government declares drought in 14,708 villages

The country is facing a supply shortage of maize used in the starch, poultry and animal feed industry on possible fall in maize output for the second consecutive year because of drought in ten states.

According to the industry, maize output is likely to drop by up to 40% in the 2015-16 crop year (July-June) due to 14% deficit in monsoon rains. Maize production had dropped to 23.67 million tonnes in 2014-15 too from the record of 24.26 million tonnes in the previous year.

Maize prices have shot up by more than 25% to Rs 1,450 per quintal in last few weeks and traders have started hoarding of the commodity, the industry added.

India is traditionally a major exporter of maize to Southeast Asia and the likely fall in production is expected to hit exports.

Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement