Govt considering raising import duty on wheat to 25%

The government is considering raising import duty on wheat to 25 per cent from 10 per cent currently, to curb cheaper imports from Australia and France, three government sources told Reuters on Thursday.

In August, India, the world's second-biggest wheat producer, imposed an import duty of 10 per cent on wheat until March 31 next year, reinstating tariffs after a gap of eight years following big overseas purchases in recent months.

Earlier this year flour millers and global trading companies sealed deals to import 500,000 tonnes of premium Australian wheat since March, the biggest such purchases in more than a decade despite surplus stocks at home.