Govt bans import duty on wheat

Johannesburg - The government has abolished a 2% import duty on wheat, according to Monday's Business Report.

The International Trade Administration Commission (Itac) had zero-rated the two percent blanket import duty on wheat. It indicated that "a policy favouring free trade and consumers alike would be strengthened at current wheat prices".

Itac said it found no justification for higher duties on wheat and wheat flour, due to the high international wheat price.

While Itac abolished the 2% blanket import duty, it reinstated the 1999 variable tariff that had applied before the blanket duty was introduced.

That tariff takes effect only if the wheat price falls below $157 (R1 619) a ton. This means the price would have to drop by about R1 000 a ton for the tariff to apply.

Amid reports of the worst eastern Free State wheat crop in decades, the move dashed any hopes that farmers would get trade protection soon, the newspaper reported.

- Sapa