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This is an archive article published on March 1, 2009

One thing Pak doesn’t see red over: tomatoes from India

As the chill in India and Pakistan relations deepens and both countries trade allegations and counter-allegations....

As the chill in India and Pakistan relations deepens and both countries trade allegations and counter-allegations,an exchange of a different kind is taking place at the border. In the last three months,India has exported over a lakh tonnes of tomatoes worth $8 million to Pakistan.

Though tomatoes have been exported to Pakistan ever since trade was allowed between the two countries from Wagah in 2005,the demand has gone up this year. “Their crop has failed in Punjab and Sindh,due to which they couldn’t meet their demand,” says Rajdeep Uppal,MD of Amritsar-based Narain Exim. Uppal is loading his latest consignment of 100 tonnes of tomatoes in five trucks that are all headed to Haider Ali Traders in Gujranwala. “In the last month,I have been sending at least 100 tonnes of tomatoes daily,” he adds.

Trade between India and Pakistan via Wagah,from July 2008 to the end of January 2009,has touched $30 million,with tomatoes constituting over one quarter of it.

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The bulk of Pakistan’s demand for tomatoes is met by Gujarat,especially Banaskantha and Mehsana districts.

Indian traders are happy at the profits they are making. A carton of tomatoes—that’s about 20-22 kg—sells in the Lahore market at Rs 450-550 per kg and in India at Rs 300 (Pakistani currency). Even after factoring in custom duties,it still leaves a neat profit for Indian traders.

Muhammad Kasam,a farmer in Bhankhari village,Banaskantha,who grows tomatoes,says: “We get Rs 260-280 for every 20 kg of tomatoes that are exported to Pakistan,while those meant for local mandis fetch only Rs 100-110 per 20 kg.”

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