The prevailing trend of Indian flour millers contracting wheat from Pakistan, which is offering competitive rates, has left domestic traders unhappy and wondering what's wrong with the rates and quality offered by them, Indian media reports said.
Wheat from Pakistan would cost the south Indian mills Rs 1,115 to Rs 1,150 a quintal at the mill gate, while it would be around Rs 1,080 a quintal if sourced from Uttar Pradesh, the traders said, adding that the cost could be less than Rs 1,125 per quintal if wheat is transported from Haryana and Punjab.
However, flour millers, who have contracted wheat from Pakistan, feel the southern states have price disadvantage over their northern millers because of the latter's proximity to wheat producing states like Punjab and Haryana, they said.
This trend is gaining credence as in the last couple of days, three traders have contracted around 35,000 tonnes of wheat from Pakistani suppliers, the reports said, adding that the total wheat import contract from the neighbouring country could be about 46,000 tonnes. Three Indian companies are said to have contracted wheat from Pakistan at a rate of USD 218-232 per tonne. Still, many traders feel that the Indian wheat is of better quality when compared with the imported Pakistani wheat and millers are importing only because of the lower procurement costs.
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