Click to play videoNew Delhi: The Indian Government is most likely to import 1 million tonnes of wheat from Pakistan. At a time when India-Pakistan relations are at a high, wheat seems to be the latest tool of diplomacy.
The state trading corporation has come out with a notice inviting global tender for 1 million tonnes of wheat and sources say that Pakistan is likely to win the tender. "There is a strong possibility that we will import wheat from Pakistan. But that will happen provided they quote according to our requirements and our size," Dr Arvind Pandalai CMD, State Trading Corp said.
It is not just Pakistan that’s in the race, India may also import wheat from the US—which last happened 15-years ago. The imports will add to the projected 15 million tonnes that the government plans to import to build necessary reserves.
Pakistan is in a much better position to compete with international prices of wheat because of low transportation costs. However, if US wheat is allowed it would give the government more options to choose from, at a time when global production of wheat is falling.
For Pakistan it's more diplomacy than economic logic that’s pushing the consignment. For the US though there is the added question of quality standards that’s been the roadblock to importing wheat from America.
"If they meet our quality and documentation standards, there is no reason why we should not be getting wheat from the US," said Dr Arvind Pandalai CMD, State Trading Corp.
So be it Pakistan, be it US or both the golden grain seems to have mastered the fine balance of trade and bilateral relations.
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