Flour millers push for wheat buffer stock hike, GST relief, export ease
Flour millers urged the government to expand wheat buffer stocks from 7.5 to 18 million tonnes to stabilize prices and ensure PDS supply. They warned of sowing delays in Punjab due to flood silt. Other demands included DDGS impact studies, export liberalization for wheat products, and GST relief on atta, maida, and suji.
Ahead of the new wheat sowing season, flour millers have urged the government to expand the opening buffer stock in the Central pool from 7.5 million tonnes to 18 million tonnes to curb volatility in market prices.
“India requires around 18.4 million tonnes of wheat every year to meet its PDS requirement. What we are suggesting is that the government builds a stock equivalent to a full year’s requirement so that there is no volatility in prices and certainty in the market,” said Navneet Chitlangia, president, Roller Flour Millers Federation of India.
The suggestion, however, is expected to raise the Centre’s subsidy burden on storage and could stretch storage limits.
Chitlangia also said wheat sowing might get delayed this year in northern states, particularly Punjab, as silt from the floods that hit the state a few weeks ago is yet to be cleared from fields in at least five districts.
He further urged the government to commission a comprehensive study on the impact of dried distillers grains with solubles (DDGS) on cattle health and milk quality. The federation said that while DDGS volumes are rising sharply, public studies indicate possible adverse effects on cattle digestion and long-term productivity.
“The surplus DDGS has also disrupted the traditional cattle feed market, causing a steep fall in wheat bran prices, which directly impacts flour millers and paradoxically contributes to higher atta, maida and suji prices for consumers,” the federation said.
The federation also demanded long-term clarity on the government’s wheat policy, especially the Open Market Sale Policy.
It said that as adequate wheat stock is now available, the government should allow phased liberalisation of wheat product exports such as atta, maida and suji.
Currently, atta export is permitted only under the Advance Import Authorisation scheme, but the millers demanded free exports of at least 1 million tonnes.
“Opening up wheat product exports freely will allow the industry to tap global markets again, give farmers better price realisation and position India as a trusted global supplier,” the millers said.
The flour millers also sought a reduction in GST rates on household consumer pack sizes of atta, maida and suji (up to 25 kg) from the current 5 per cent to nil.
“This will directly benefit households and improve affordability by around Rs 1.50 to Rs 2 per kg,” the federation said.
It welcomed the government’s decision to continue exemption on industrial pack sizes above 25 kg and urged similar relief for household consumer pack sizes.
The millers further demanded that flour milling machinery and wheat storage silos be moved to the 5 per cent GST slab from the prevailing 18 per cent.
They also said that, though agriculture is a state subject, the cess imposed by state agriculture mandi boards should be subsumed under GST.
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Source : Business Standard
