NEW DELHI: India will soon ask state-run traders to import half a million tonnes of duty-free corn after a second straight drought cut output, in what would be the country’s first overseas purchase in 16 years, two government sources said on Thursday.
India has agreed to allow state-run traders such as PEC Ltd to import corn to curb rising prices and avoid shortages, said a government official directly involved in the decision-making process. The official requested anonymity because he is not authorised to talk to the media.
The government will import only non-genetically modified varieties, another government official said. Trade ministry spokesman Rajinder Choudhury had no immediate comment. India is traditionally a major corn exporter to south-east Asia, but higher local prices because of the first back-to-back drought in nearly three decades and rising domestic demand have hampered exports.
The country has not struck even a single deal so far in the current fiscal year, after selling 2.8 million tonnes in 2014/15. Local corn prices have jumped 28 percent in the past six months.
