Mills to import 4,000 tn wheat from Pakistan

Flour mills in southern part of the country have placed orders to import about 4,000 tonne wheat from Pakistan at $224-$235 a tonne, an industry official said today.

The wheat will be imported loose in containers, and shipments would start reaching Indian shores from mid-May, the official said.

Deals have been struck at $232 a tonne for delivery at Chennai port, $235 a tonne for delivery at Tuticorin and Cochin ports, and $224 at Nava Sheva port.

The official said wheat imported from Pakistan would cost about Rs 10,800-11,300 a tonne at mill gate after adding clearing charges and transport costs for mills within a 300-400 km radius from the ports.

Imports are marginally cheaper than the wheat (at Rs 11300-11400 a tonne) supplied to this part of the country.

"Imported wheat will be attractive only for port-side mills, that too for a limited period," the official said. That will not remain lucrative for long as domestic prices are expected to ease once harvest pressure builds in northern part of the country.

The government had last month allowed private players to import duty-free wheat till December 31. In 2006, private players had imported about 8 lakh tonne wheat at zero duty, none, however, from Pakistan.

Last year, the government was contemplating bartering sugar from the country for Pakistani wheat, but the deal did not materialise.

This year, the government has been kept out of the loop, and wheat imports from Pakistan have been undertaken by private players.

Pakistan government last week said it would allow the private sector to export wheat as output in the country is likely to top 22.5 million tonne this year.

Most traders feel India will not need to import much wheat this year, as domestic output estimates are high.

The government's third advance estimates peg the country's rabi 2007 wheat output at 73.7 million tonne, up from 69.5 million tonne a year ago.