Mongolia cuts wheat flour import duty to zero

The Mongolian government announced on Wednesday a significant reduction to slash import duties on wheat flour to zero from 15 per cent, in a move aimed to combat rising inflation, Xinhua reported.

The government seeks to increase the availability of flour, maintain the stability of its supply and price, and ultimately reduce inflation, said Dashzegve Amarbayasgalan, Minister of Mongolia and chief of Cabinet secretariat.

Flour and flour-based products are a crucial component of Mongolia’s consumer basket, accounting for roughly 60 per cent of over 400 essential goods and services, as per the statement.

Currently, the country experiences an inflation rate of 7 per cent, exceeding the government’s medium-term target of 6 per cent.

By eliminating import duties, the government hopes to increase competition in the domestic flour market, potentially leading to lower prices for consumers.