The Hindu Business Line : Pak flour mills offer to buy 1 lakh t wheat

There is scope to export at least 20 lakh tonnes of wheat to Pakistan flour mills annually. But this can be done only if the consignments are allowed by road through the Wagah border.

Chennai , July 14

PAKISTAN has shown interest again in buying wheat from India with the flour mills across the border offering to buy one lakh tonnes immediately.

"The roller flour mills in Pakistan have expressed interest to buy one lakh tonnes. We feel it will be viable only if we transport it by road through Wagah border," an official of a State-run trading firm said.

Two weeks ago, the Punjab State Cooperative Supply and Marketing Federation Ltd (Markfed) wrote to the External Affairs Ministry urging it to examine the feasibility of throwing open the Wagah border for moving wheat.

Pakistan mills' offer to buy wheat from India follows fears of a fall in the wheat crop there. Pakistan is projected to produce at least five lakh tonnes short of the anticipated domestic demand and it floated a tender earlier this month inviting bids for delivery before September.

According to Mr S.S. Channy, Managing Director, Markfed, there is scope to export at least 20 lakh tonnes of wheat to Pakistan flour mills annually. "But this can be done only if the consignments are allowed through the Wagah border," he said.

"Sending consignments through sea from Mumbai to Karachi and then to Lahore will simply not work economically," he said.

Earlier this year, Pakistan mills offered to buy wheat from Markfed and then too, it referred the issue to the Commerce and External Affairs Ministry for transporting the consignment by road.

According to trade sources, it is the Pakistan Government that is not allowing wheat consignments by road citing the presence of Karnal Bunt disease in Indian wheat. Karnal Bunt is a fungal infection that affects the grain and makes it powdery. Three years ago, Pakistan refused permission for Indian wheat to pass through to Afghanistan citing the same reason. As a result, then the Government had to convert the wheat, meant as food aid, into biscuits and export it.

"The Union Government should sort out the issue quickly since both the countries stand to gain by allowing transportation of agri-commodities by road," trade sources said.

In the case of wheat, the roller flour mills' offer to buy Indian wheat could turn out to be a win-win situation for both the countries. While India gets a good price for its wheat from Pakistan, the neighbouring country, in turn, can sell wheat flour and even superior wheat to Afghanistan.

On the other hand, the exporting community is looking forward to the Government coming out with a new foodgrain export policy. "The Government has decided how much grain it can spare for export and how it will tackle the issue of subsidy," the sources said.

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