More Pak wheat exports to help India

Pakistan has approved the export of an additional 500,000 tonnes of wheat in view of higher output estimates, the country's newspapers reported today.

Pakistan, in December 2006, had revoked the 15 per cent duty on wheat exports and allowed private traders to export 500,000 tonnes, which was later increased to 800,000 tonnes as the country's wheat output this year is seen topping 23 mt.

The country has a 2 mt wheat surplus this year and is running short of storage.

With the additional allocation, private exporters in Pakistan can ship 1.3 mt wheat out of the country. Pakistani wheat works out to be much cheaper than wheat from any other origin due to the country's proximity to India.

An industry official said Indian traders had already placed orders for importing about 70,000 tonnes from Pakistan, of which close to 50,000 tonnes has already reached Indian shores.

Flour millers in south India have been importing wheat from Pakistan at $222-235 a tonne, which is currently much cheaper than the Black Sea or Canadian wheat.