NEW DELHI/SINGAPORE (Reuters) - India and Pakistan moved closer on Monday to export wheat and wheat products for the first time in several years after bumper harvests left them with surpluses.
While India is near to exporting 2 million tonnes of wheat and wheat products, Pakistan is expected to ease curbs on wheat product exports on Tuesday, taking a step closer towards allowing sales of the grain.
The export of around 2.5 million tonnes from the two nations -- paltry in global trade of around 120 million tonnes -- could present competition to the Black Sea wheat in the Asian and the African markets.
Rising global wheat stocks have pressured the benchmark Chicago Board of Trade wheat this year, even though the market has found some strength in recent weeks on delay in U.S. spring wheat plantings.
India will shortly allow exports of 2 million tonnes of wheat and wheat products, but it will not subsidise shipments, Trade Secretary G.K. Pillai told Reuters.
"Exports will be allowed through select ports. This has been done to monitor how much wheat is being exported," he said, adding a formal government order would be issued shortly.
Indian traders said they were ready to immediately start exporting to neighbouring countries such as Bangladesh and Nepal but sales to other destinations needed government subsidy.
Wheat from India's eastern state of Bihar, where government agencies have not bought wheat, can be supplied to Bangladesh even at current international prices.
Source : REUTERS INDIA