Corn traders expect import duty to be slashed to 10%

The government is likely to reduce import duty on corn to 10-15 per cent from the current 60 per cent due to lower domestic production this year, industry insiders told ET. They also expect the commerce ministry to allow state-owned Metals and Minerals Trading Corporation of India  to announce e-tender for half a million tonnes of corn in a week’s time.

State Trading Corporation of India too is trying to be a canalising agency for corn imports, trade sources said.

Corn, or maize, is the third largest cereal crop in the country after rice and wheat. As per the second advance estimates of kharif production released by the government in February, production of maize is expected to be 27.80 million tonnes in 2018-19, down from the previous year’s 28.72 million tonnes.

The industry expects the production figure to be even lower because of deficit rainfall and worm attack. Hence the move to increase imports and cut customs duty. MMTC has already got data on the domestic requirement and it has asked for zero duty import of over half a million tonne of corn, a trader from Delhi told ET. It will take another 7-10 days for the commerce ministry to clear the proposal.

The trader who requested anonymity said the trade expects the ministry to reduce import duty on corn to 10 per cent to 15 per cent, because allowing zero duty imports will impact India farmers. The rabi harvesting will soon begin in Bihar, Uttar Pradesh and Punjab, followed by coastal region of Andhra Pradhesh and Karnataka.