May 24, 2006

Pakistan hopes to export wheat to India

Pakistan, looking to export wheat for the first time in more than two years hopes to sell some of its surplus grain to India, who is now having difficulties meeting its 3-million tonne tender.

Trade between the two long-time rivals received a new lease of life when Pakistan opened its door for Indian sugar for the first time in years.

Since Pakistan is expecting a larger wheat crop this year, the country is hopeful that exports would go through.

Fahim Akhtar Khan, managing director for the state-run Pakistan Agricultural Storage and Services Corporation Ltd said Pakistan would be one of the bidders in the tender.

Analysts have said that India might consider alternative suppliers as traditional exporters Australia and the United States say Indian specifications were too stringent.

India's three-million tonne tender has received only eight bids totalling 2.68 million tonnes so far.

Khan said Pakistan would decide next month how much grain the country would be exporting. With a two-million tonne carryover stock and a higher harvest this year, Pakistan is in a good position to export, said Khan.

Pakistan also hoped to re-open the Middle Eastern markets. Before Pakistan banned wheat exports in 2004, it exported wheat to the Middle East and Africa.