Pakistan is facing shortage of sugar and India of wheat. Both the countries therefore are exploring the possibility of a barter arrangement — India bartering sugar for Pakistan's wheat. However, a decision in this regard will be finalised after a final estimate of the wheat crop in Pakistan. Preliminary estimates suggest that the country might have an exportable surplus of about 1.5 million tonnes (mt), after meeting the domestic demand estimated at 20/21 mt. Unless the surplus production can be marketed, the farmers will be hit. However, India's requirement of wheat is much larger. Pakistan had banned exports after a crop failure in 2004. Despite the Pakistan Government's insistence, the private traders in that country, it is learnt, have not come forward in a big way to participate in the wheat trade presumably because the return is not-so-remunerative.
