New Delhi: The domestic price of maize has started falling after the government reduced import duty on feed-grade maize to 15 per cent from 60 per cent.
The move to reduce duty was aimed at improving domestic availability of the commodity in the wake of rising prices and concerns about a poor crop.
On Thursday, the price of maize in Gulab Bagh mandi in Bihar corrected by 2 per cent over the previous day to Rs 2,100 a quintal, said Ummad Duggar, owner of Bharat Duggar trading company.Prices will now gradually drop with government allowing import of 1 lakh tonne of maize.
With the new crop arrival started in Bihar, there will be further pressure on prices, said Duggar.
He said prices are expected to touch Rs 1,800-1,900 a quintal in the next 15 days.Last month, ET had reported that reduction in duty was likely.Opening imports will give the much needed relief to the domestic industries, said Simon George, president, Cargill India.
We welcome this move by the government, though these quantities may not suffice, he said.For now, import of up to 1 lakh tonne feed-grade maize will be allowed on actual user condition, the Directorate General of Foreign Trade (DGFT) said.
Keeping in view the urgency, feed-grade maize is proposed to be imported under TRQ (tariff rate quota), it said, adding that certain relaxations and conditions will be applicable.