Wheat exports to Pak awaiting clearance

Marketing cooperative Markfed is awaiting clearance from the external affairs ministry to supply two million tonnes of wheat to flour mills in Pakistan through the Wagah border.

"The issue of exporting two million tonnes of wheat to flour mills in Pakistan is now with the external affairs ministry," S S Channy, managing director of Markfed, told PTI.

Channy said the supply of wheat would be preferable via the rail route to Wagah border for Pakistan as it would result in savings at the rate of Rs 63 crore for every million tonnes in the form of trade subsidy.

He said while exports by rail would entitle exporters for this incentive in the form of freight subsidy, the same may not be possible if the wheat is transported by road.

The managing director of the punjab state cooperative supply and marketing federation ltd (markfed) said it would ask food corporation of india for the supply of wheat if the proposal of export to pakistan gets government nod.

Union agriculture and food minister Sharad Pawar has made it clear that the government would not be inclined to go for exports as foodgrains were required for domestic consumption.

He, however, said the government was not against export of foodgrains by private traders through the open market route.

Channy said in the event of fci not supplying foodgrains for export to the neighbouring country, markfed would go for commercial purchase from the open market.