January 24, 2005

India's Punjab state awaiting approval for Pakistan wheat export

The marketing cooperative of Indian state of Punjab has said it is awaiting clearance from the External Affairs Ministry to supply two million tons of wheat to flour mills in Pakistan over the Wagah border.

"The issue of exporting two million tonnes of wheat to flour mills in Pakistan is now with the External Affairs Ministry," SS Channy, managing director of Punjab State Cooperative Supply and Marketing Federation Limited (MARKFED), said.

Channy said the cooperative preferred supplying the wheat by train over the Wagah border as it would save them Indian Rs 630 million per million tons in the form of trade subsidy. He said exports by train would entitle exporters to a freight subsidy, which was not given if goods were transported by road.

Channy also said the cooperative would ask Food Corporation of India to supply the wheat if the proposal of export to Pakistan got the government¡¯s approval.

Union Agriculture and Food Minister Sharad Pawar has made it clear that the government would not be inclined to go for exports as food grains were required for domestic consumption. However, Channy insisted that the government was not against private traders exporting food grain from the open market.

In the event that FCI did not supply food grain for export to Pakistan, MARKFED would opt to buy from the open market, he said.