Pakistan picks costlier import options ignoring India’s huge sugar, wheat stocks

[mudas777]

Pakistan picks costlier import options ignoring India’s huge sugar, wheat stocks

In April, Islamabad had asked New Delhi to restore Article 370 to allow Indian imports
Even as India is exporting its surplus stocks of sugar and wheat to countries in the Indian Ocean region, Pakistan, its neighbour, is spending huge sums to import them from other countries.
A fortnight ago, the Economic Coordination Committee (ECC) of the Pakistan Cabinet approved the import of 1.1 lakh tonnes (lt) of wheat at $355.9 (₹26,000) a tonne and two lakh tonnes of white sugar at $657 (₹48,000) a tonne. The Imran Khan government will spend $270 million (₹1,970 crore) to import these commodities to meet domestic shortfall and build strategic reserves.


Earlier this year, Pakistan decided to import six lakh tonnes of sugar, of which one lakh tonne have already arrived. The neighbouring country also decided to import five lakh tonnes of wheat with one lakh tonne already finalised through a tender at $304 (₹22,200) a tonne.
Loans to manage imports
The Trading Corporation of Pakistan, which is canalising the imports, has been asked by the ECC to avail of commercial loans to manage the imports. Pakistan is importing wheat despite estimates of a record 27.3 million tonnes production this year.

Pakistan got the first consignment of one lakh tonne of sugar at $515.97 (₹37,650) a tonne. Sugar prices in the global market are ruling near four-and-a-half year high on fears of lower production in Brazil. Raw sugar prices have topped $20 cents a pound (₹32,400 a tonne) on the Intercontinental Exchange (ICE). White sugar in London is quoted at $505.90 (₹36,925) a tonne for December delivery.
Kashmir issue
However, these imports will have to be ratified by the Federal Cabinet. Pakistan is buying both commodities at prices far higher than what India offers to other countries. The dispute over Kashmir is being cited as a reason by Islamabad to not import any commodity from India.
“Kashmir or any other issue is mere posturing. All these deals are underhand ones,” said a trader source not wishing to be identified. The ECC of the Pakistan Cabinet is probing into these deals, particularly when tenders finalised earlier this year were not honoured.
While Pakistan is having to pay a high price for importing wheat and sugar, India has been exporting both these commodities at a very competitive price.
Delivery across the border
“Pakistan could have got sugar from India at $525-30 (₹38,300-38,675) a tonne. We could have delivered them in trucks through our land borders,” said Rahil Shaikh, Managing Director, MEIR Commodities India. “Pakistan could be getting its sugar from one of the refineries in Dubai,” he said.
At the same time, Indian sugar exporters have sold over 10 lt of sugar through forward contracts for the next season starting October. “Most of the contracted deals are for shipping raw sugar. These will be heading for the usual destinations such as Indonesia,” Shaikh said.
All-India Sugar Traders Association Chairman said most of the export deals have been struck at $471.50 (₹34,400) a tonne free-on-rails from Kandla in Gujarat.
Wheat prices
In the global wheat market too, India is currently offering at $290 (₹21,175) a tonne free-on-board. It had begun exporting at $260 (₹19,000) a tonne before it raised the rates following a jump in global market prices. Currently, wheat on the Chicago Board of Trade for December delivery is quoted at $6.96 a bushel (₹18,675 a tonne).
According to trade sources, Pakistan is the only country that is not tapping into India’s “mountain of stocks” of these commodities. Bangladesh has turned out to be a major beneficiary of the huge stocks of wheat and rice in India. Similarly, Nepal and Sri Lanka are also importing a good volume of these from India.
According to Agricultural and Processed Food Products Export Development Authority (APEDA) data, Bangladesh has imported 3.95 lt of wheat valued at ₹767.07 crore during April-June this fiscal. Last fiscal, it bought 11.57 lt worth ₹2,191 crore.
Nepal imported 91,465 tonnes of wheat and Sri Lanka 76,280 tonnes during the first quarter at a total value of ₹322.48 crore. Last fiscal, the Himalayan kingdom imported 3.28 lt and Lanka 94,041 tonnes, totalling ₹798.07 crore.
Supporting Shaikh’s views on delivery of sugar, an exporter said at least 150 trucks plied from India to Bangladesh daily to deliver maize (corn) consignments. Before India-Pakistan relations hit a dead-end, most of the trading was done through trucks across the border.
Nod rejected in April
The case was similar with cotton and cotton yarn earlier this year. In April, the Pakistan Cabinet turned down its ECC approval to import sugar, cotton and cotton yarn “until Article 370 is restored” by India.
Then, the ECC approved import of 5 lt of sugar by June 30 and cotton and cotton yarn from June. Though trade relations between India and Pakistan have been affected due to the Pulawama blast in February 2019 that killed 39 Central Reserve Police Force (CRPF) personnel, New Delhi had said it would have no objection to the trade supplying sugar and cotton to Pakistan.
Pakistan had permitted import of Indian medicines in May last year to tackle the Covid pandemic. But it does not want to import these essential commodities, whose prices have skyrocketed in its domestic market.
Also read: IMF to provide $2.77 bn ‘unconditional’ funds to Pakistan this month
India currently has ample stocks of wheat, sugar and cotton with it. As on August 1, FCI carried 56.48 mt of wheat stocks compared with 51.32 mt a year ago. FCI stocks are higher after the Centre procured a record 43.32 mt of wheat from farmers this year against 38.99 mt last year. Besides, India produced a record 122.27 mt of wheat this year. As regards to sugar, India will have 8.7 mt of ending stocks, while cotton ending stocks are projected to be over 90 lakh bales (of 170 kg).




Imran is going to bankrupt Pakistan.

Its called Kashmiri tax until and unless article 370 is removed no trade with India, end of the story. Pakistan will survive you don't need to worry about us and be careful with the fascist chai walla economics. Pakistani's from abroad send enough remittances to balance our books. Take your condescending article and shove it where sun light doesn't lights the black matters of yours. Wheat grown in the human waste and sugar extracted from the fields of filth gives us cringe, when ever we see produced in India. Below par and below standards no wonder UK imports sugar from the Caribbean countries. With the food produced in India, one have to have major health concerns. No Thank you.

 

[Vanamali]

Good choice.
We rather pay more instead of importing from India while they oppress Kashmiri

Good but you have selective self respect...

 

[Leonardo]

It was the job of freedom fighters from your western border who did this

while what about the hundreds of Indians who y'all massacred by men who were trained and directly came from pakistan

View attachment 775296

Yeah the freedom fighters who only get activated during elections or the inquiry against the butcher about corruption in rafale deal...how convenient

 

[salute]

Its called Kashmiri tax until and unless article 370 is removed no trade with India, end of the story. Pakistan will survive you don't need to worry about us and be careful with the fascist chai walla economics. Pakistani's from abroad send enough remittances to balance our books. Take your condescending article and shove it where sun light doesn't lights the black matters of yours. Wheat grown in the human waste and sugar extracted from the fields of filth gives us cringe, when ever we see produced in India. Below par and below standards no wonder UK imports sugar from the Caribbean countries. With the food produced in India, one have to have major health concerns. No Thank you.

Its more like tax on Pakistan. You know UK's biggest industrial employer is TATA? Also you know UK does lot more trade with India than Pakistan? How come Pakistan is still in red list of UK?

 

[IbnAbdullah]

Salaam

Look all I am saying is there is a benefit attached to trade with India. India put pressure on Malaysia initially but both countries worked it out within a short time span. Malaysia realised what it is loosing and took corrective actions for its benefit. Where is the corresponding beneficial action from Pakistan (Imran). Even India with all the hubris of last year managed to increase the trade with China this year because it is just beneficial to us.

I think it is just foolish to cut off your nose to spite your face. Thanks.

I think that assumes the cost difference between the Indian wheat and the next best option is large enough to significantly hurt Pakistan.

 

[Raj-Hindustani]

Actually, Pakistan is buying Indian Sugar and wheat via third countries.

Anyhow, Indian sellers are getting the dollars... That is an important part of the episode.

 

[salute]

Salaam





I think that assumes the cost difference between the Indian wheat and the next best option is large enough to significantly hurt Pakistan.

Sugar and Wheat are just 2 products in the article. I am meaning all of the trade that could benefit Pakistan.

 

[hussain0216]

You sure ? not many pakistanis will agree with you...

Sole islamic nuclear country ?

Islamic Republic ?



What lesson ?

Are you accepting you are too weak to handle India and needs a sugar daddy in China ?

Thus ignoring the plight of Poor Uyghurs Muslims....

Utilising China to beat India like a dog is a superb strategic move


China is the next superpower of the world and we both have a mutual enmity with India why not take advantage of it

 

[salute]

Utilising China to beat India like a dog is a superb strategic move


China is the next superpower of the world and we both have a mutual enmity with India why not take advantage of it

Utilising China? Yeah, right. Haha

 

[PAKISTANFOREVER]

I am sure you are drowning your insecurities with such bad articles on India. I pity you.

So you you don't want to accept the reality of the world's biggest sewer aka india?..........

PS Not as much as your insecurities due to little indi weiners............ :

BBC News - Condoms 'too big' for Indian men

news.bbc.co.uk

 

[hussain0216]

Utilising China? Yeah, right. Haha

Yaar we have fcuked over multiple states not just India

China has been a generally superb ally, we have mutual interests in defeating and beating India down

In fact we hate the Hindus and Indians more then the Chinese do

So getting China to beat India down, and set up it's forces on the border's of India

Yeah utilising China

 

[Protest_again]

Yaar we have fcuked over multiple states not just India

China has been a generally superb ally, we have mutual interests in defeating and beating India down

In fact we hate the Hindus and Indians more then the Chinese do

So getting China to beat India down, and set up it's forces on the border's of India

Yeah utilising China

You are just cheerleaders of China, nothing more nothing less. You are not on par to use the word 'using' with China.

 

[MilSpec]

Good choice.
We rather pay more instead of importing from India while they oppress Kashmiri

And sell JF17's to Myanmar, looking other way at the Rohingya genocide. Hypocrisy thy name be?

 

[Wood]

It is surprising to find that Indian wheat and sugar is priced significantly lower than that of the market. Hope India can find alternate markets for the produce

 

[Leonardo]

K

And sell JF17's to Myanmar, looking other way at the Rohingya genocide. Hypocrisy thy name be?

Kashmir is disputed territory between Pakistan and india not Myanmar