India plans to export sugar to Pakistan to meet its shortage in that country. "With a good monsoon, India is set to get a bumper sugar crop of 175-180 lakh tonnes compared with last year's 128 lakh tonnes ... we will be able to handle Pakistan's needs," said S L Jain, director general of Indian Sugar Mills Association.
He said India could easily export 3-3.5 lakh tonnes sugar that Pakistan needs. Indicative price being quoted by Indian traders for supplies across Wagah border is about Ind Rs 1600 a quintal (100 kg.), slightly lower than prices in domestic market.
Trade routinely resorts to lower quotes in global market in order to capture a new market and tentative offer bids to Pakistan seem aimed at just that.
"We need to export some sugar against imports that we went in for during last two years ... this market opening could not have been at a more opportune time," he said.
Jain and other traders see opening up of Pakistan market as opportunity to stick to guidelines while prising open a market that had been shut to their overtures for last few years.
"Pakistan market is a natural extension of north Indian marketplace yet we are able to trade in few commodities to that nation ... they have placed most commodities on their negative list of imports which means we have to route our exports through Dubai," said P Gupta, a leading Delhi-based commodity trader.
Pakistan had permitted the import of live animals, garlic, tomatoes, potatoes and onions from India as a one-time measure to beat down rising prices of these commodities. However, this did not result in much business, traders said.