April 30, 2007

 

Pakistan eyes larger wheat trade with India

 

 

Commodities trading between India and Pakistan in items such as wheat and cotton can accelerate manifold to the benefit of both sides if rules for import and export are made easier and greater market access is given to both sides through land or rail, according to trade and industry officials from Pakistan.

 

The officials, currently on a visit to India, voiced these concerns and offered large volumes of wheat to their eastern neighbour.

 

Pakistan may be able to export up to 500,000 tonnes wheat to India in 2007 due to a local surplus availability of 2.0 million tonnes.

 

"We have a surplus this year that Pakistan is offering to buyers in India," Tariq Sadiq, director of Sihala Flour and General Mills told Dow Jones Newswires.

 

Sadiq said samples of wheat from Pakistan that he has brought along have been rated to be of good quality by prospective Indian buyers.

 

He said Pakistan could even sell its entire surplus of 2.0 million tonnes to India this year, if the land route through the Wagah border between India and Pakistan in the northern province of Punjab is allowed to be used for this purpose.

 

"It is more practical to supply wheat through road or rail from the producing regions in Punjab and will also bring down the offer prices by US$50/tonne," Sadiq said.

 

He said a proposal under consideration is to set up large warehouse in Wagah with openings on both sides of the border where commodities such as wheat can be stocked and lifted at convenience.

 

Sadiq, who is also a former President of Islamabad Chamber of Commerce and Industry, said the matter has been taken up with government authorities in Pakistan to facilitate such logistical arrangements.

 

He said most wheat producing regions are in Punjab and such warehouses would be of immense help for quick delivery of sales into India and vice-versa for other commodities in which Pakistan is deficient.

 

"If the land-border between the two countries is opened up we will beat wheat of any other origin both in terms of price and quality hands down," Sadiq said.