India welcomes Pakistan move to allow Indian sugar imports
(Reuters)
Updated: 2005-08-01 16:15

India welcomed on Monday a move by Pakistan to lift a ban on sugar imports from India in an attempt to check high domestic prices, reported Reuters. 

Pakistan banned imports from India in 2001 after its domestic industry said cheap Indian sugar was hurting cane growers and processors.

"Any trade between India and Pakistan is welcome," Indian Commerce Secretary S.N. Menon told Reuters. "We encourage trade from both sides."

Earlier on Monday, a senior Pakistani official told Reuters in Karachi the government had decided to allow sugar imports from India, and a formal announcement was expected soon.

Pakistan, which last month bought 100,000 tonnes of white sugar from United Arab Emirates firm Al Khaleej, is expected to issue another tender for the import of 50,000 tonnes of refined sugar soon, officials said.

Last week officials had said they would not allow international suppliers to offer Indian sugar in the upcoming tender. Some suppliers tried offering Indian sugar in the last tender, that opened on July 28, but it was rejected.

The need to check domestic prices led to the change, officials said.

"It is for the Indian trade to do it now, we have no difficulties in this regard," Menon said.

Indian sugar industry officials said they would be able to supply sugar to Pakistan at competitive rates and in the shortest possible time.

"Our relations with Pakistan are improving and this will be one more feather in the cap," said Vinay Kumar, managing director of the National Federation of Cooperative Sugar Factories Ltd.

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