A grain truck filled with hard red spring wheat is unloaded. (Photographer: Shannon VanRaes/Bloomberg)

India Raises Import Tax on Wheat to 40% to Support Local Farmers

(Bloomberg) --

India raised the customs duty on wheat to 40 percent from 30 percent, as the country is set for a record rise in output for the third year in a row.

The increase in the tax, announced by the Central Board of Indirect Taxes and Customs in a notification dated Friday, will support local farmers, by making imports of the grain costlier. Last year, the government had increased the import duty on wheat by 10 percentage points to 30 percent.

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