May 24, 2006	Wednesday	Rabi-us-Sani 25, 1427

SINGAPORE, May 23: Pakistan, looking to export wheat for the first time in more than two years, is confident it will sell some of its surplus grain to India.

A revival in commodities trade between the two neighbours got a boost last year after Pakistan opened its door for Indian sugar for the first time in many years.

And now with Pakistan gearing up to harvest a larger wheat crop than last year, Islamabad is hopeful that it might succeed in striking export sales to India, which is looking to import the grain for the first time in six years to rein in its domestic prices.

“We will have exportable surplus this year and India is in need of wheat. We will also bid for it,” Fahim Akhtar Khan, managing director for the Pakistan Agricultural Storage and Services Corporation Ltd, told Reuters in an interview.

The views of Mr Khan found support from traders and analysts who said that India might consider buying from a variety of countries as suppliers in Australia and the United States say Indian specifications for wheat were too stringent.

“I know the two countries are talking to do some business,” said one Singapore-based industry official.

India has floated a tender to import three million tons of wheat but it has received only eight bids totalling 2.68 million tons. Mr Khan added that the Pakistani government would decide by the middle of next month how much grain the country would be able to offer for overseas sales.

“We are expecting a good crop this year and we also have more than two million tons of carryover stocks. After meeting domestic demand, we will still have some surplus,” he said.

Pakistani farm ministry officials earlier this year said that the country would harvest 20.5 million tons of wheat but Mr Khan said favourable weather conditions and water availability might help the country harvest a crop close to 22 million tons.

Pakistan produced 21.5 million tons of wheat last year. Pakistan banned wheat exports in May 2004. Before the ban, it found markets in the Middle East and Africa, exporting 1.7 million tons in the fiscal year ending in June 2003.

“We will also be eyeing the Middle East to export some wheat,” Mr Khan said. “It’s difficult to say now at what levels we might be able to offer in international markets.”—Reuters