Private Indian firms will seek government approval to import wheat from Pakistan overland to cut costs, a top industry official said on Thursday. Pakistan has 500,000 tonnes of surplus wheat and traders from India may buy the entire quantity if both countries allow trade through a border post close to the Indian city of Amritsar and Pakistan's Lahore, trade sources say.
"We are going to see officials of the commerce ministry to press for our demand to import wheat from Pakistan through the Wahga border" Prem Gupta, president of the Roller Flour Millers Federation of India, told Reuters in an interview.
Indian traders have so far imported 2,500 tonnes of wheat from Pakistan, the grain arriving last month at the southern port of Tuticorin for $232 a tonne on a cost and freight (C&F) basis.
"Wheat prices are at around Rs 930 ($22.79) per 100 kg. If we import through Wahga, it will cost not more than 900," Gupta said. The South Asian neighbours have opened several transport links in recent years as ties improve.
"Pakistan grows wheat mainly in Punjab so it makes sense to import through Wahga in the north," Gupta said. "If buses can ferry people from India to Pakistan or the other way round, why can't they allow commodities to be traded via the physical border?" Indian private firms have imported over a million tonnes of duty-free wheat since August, when they were allowed to tap overseas markets at zero duty.