NEW DELHI, Aug 4: India expects to strike quick sugar deals in Pakistan which this week removed a four-year ban on imports from its old rival, traders said on Thursday. They said enquiries from private trade in Pakistan were growing and Islamabad was looking for early consignments to contain rising domestic sugar prices.

“Sugar prices in Pakistan are under fire and for fire-fighting they will have to look towards us,” said Prakash Naiknavare, managing director of the Maharashtra State Sugar Factories Federation Ltd.

“India is the nearest fire engine.” Despite recent heavy imports by Pakistan, domestic sugar prices are hovering around Rs30 per kg compared with Rs22 early this year, traders said.

Pakistan lifted a ban on sugar imports from India on Tuesday and allowed the state-run Trading Corporation of Pakistan (TCP) to buy a further 100,000 tons to boost its stocks.

The country’s attempts to check sugar prices, which reached a four-year high in February, have been thwarted by low rainfall, which is set to trim its crop by at least a fifth.

“The process for exports to Pakistan is going on and very shortly deals will be finalized, maybe in the next few days,” said an official of a leading sugar trading house. He said the prices offered would be competitive and initial consignments were likely to be small, designed to test the market.

“Talks are on with private traders in Pakistan and we hope to get more than $370 a ton for our sugar at Wagah border,” he said. The official said initial exports would be by mills which had imported raw sugar in this season under an obligation to re-export it in refined form within 24 months.

Naiknavare said the industry was bullish about exports.

“I think within a week’s time Indian sugar should start moving to Wagah,” he said.

He said India sugar would be available at Wagah $25-30 per ton cheaper than other origins and in turn bring down domestic prices in Pakistan.

“Today sugar is sold in Pakistan at Rs30 a kg, it should come down to around Rs25,” he said. Naiknavare expected Pakistan to buy 300,000-500,000 tons of sugar from India over the next few months.

Traders said most of the sugar to Pakistan would be sent by rail from mills in Uttar Pradesh, Punjab and Haryana because this will be economical and cut travel time.—Reuters