NEW DELHI/KARACHI, Feb 2: India and Pakistan talk a lot about reviving the sugar trade between them but so far little has happened and many are doubtful much ever will. Pakistan is anxious to buy some 800,000 tons of sugar to check runaway domestic prices after a small cane crop. Indian mills, meanwhile, are willing to fill the bins and help carry forward the peace process between the two neighbouring countries.

“It is sweet so far as talk is concerned on trade links but when it comes to actual business transactions it has been far from sweet,” said one analyst in Mumbai. “It has not turned sour, but it is not sweet.”

Pakistan has bought only small cargoes of Indian refined sugar since August last year when Pakistan lifted a four-year ban on imports from its long-time rival.

Trade officials and analysts say despite statements of intent, business has not picked up because not enough was being done on the ground for trade to prosper.

Pakistan on Tuesday said it planned to buy 50,000 tons of white sugar from India, the first by the government in five years.

“The Pakistan government has made the decision in haste most probably to put pressure on traders to cut the retail prices,” said a Karachi-based trader who did not want to be named.

Indian Farm Minister Sharad Pawar has promised to seriously consider Pakistan’s proposal.

Traders in Pakistan said imports from India would be viable only if the government made adequate arrangements to bring them across land. But Indian exporters have repeatedly complained about a lack of railway cars to move the sugar.

Adding to the woes is a lack of enthusiasm from the Indian government to part with sugar due to low stocks at the start of the season in October, high consumption and a recent spurt in domestic prices.

A searing rally in global prices has also shown little signs of abating. London white sugar futures set a 15-year peak of $439 per ton on Friday.

The Trading Corporation of Pakistan has in recent months floated several tenders to buy sugar but none ended in India’s favour. Traders said the conditions stipulated were difficult to meet.

Omer Najib Balagamwalla of Pakistan’s Seatrade Group said traders had finalized deals for around 50,000 tons of sugar with Indian traders but supplies were not forthcoming.

“World prices are also increasing day by day and if the situation remains as it is, Indian traders can back out.”

Indian mills say exporters were unable to fulfil their commitments on time since the railway provides only a limited number of cars.—Reuters