India seeks transit from Pakistan to supply wheat to Afghanistan

[sree45]

Competition is different than artificially lowering prices by highly subsidizing them; that defeats the very purpose of free-trade !

Actually, Our Godowns are full and a good quantity of grain is rotting. Any rupee we get from those sales is a bonus for us.

 

[Nova2]

No need to allow this. They are free to go through Iran.



Don't be stupid, there is the M2-M1 motorway, from Lahore to Peshawar, safer than any highway in India.

Hmm,well it was your countrymen saying Iranian route would be safer,i guess he was stupid.
But seriously what's the problem if the transportation is allowed?

Actually, Our Godowns are full and a good quantity of grain is rotting. Any rupee we get from those sales is a bonus for us.

its better to sell them at cheap rate than let them rot in godowuns.

 

[Sugarcane]

True. But Chahbahar is closer and if am not wrong there is a railway line to Afghanistan. Development of chahbahar would be a game changer for India and Afghanistan.

The costs of using other ports may be high and for that reason, India may have asked for transit thru Pak.

Iran has good railway links from other ports as well, sure transit cost will be higher but your govt. can cover up by further subsidizing.

Sure - Chahbhar will be game changer but still will be expensive routes for agriculture exports as compared to land route via Pakistan. That will be good for Pakistan as it will compensate Indian subsidies hence will give us little bit level playing field.

 

[SrNair]

Chahbhar is not the only port of Iran.

Our project is still need to be completed and other routes are uneconomical.

 

[Donatello]

Hmm,well it was your countrymen saying Iranian route would be safer,i guess he was stupid.
But seriously what's the problem if the transportation is allowed?


its better to sell them at cheap rate than let them rot in godowuns.

Practically, everything in Afghanistan goes from Pakistan. From fuel, to light bulbs to large amount of food/cement/steel etc.

If India goes there, Pakistani businesses will lose out, it's a small market, very very small, but still it will a loss. Now, since most of these business owners have connections in Pakistan's government, chances of allowing unrestricted trade to India via Pakistan, are slim.

 

[Sugarcane]

Competition is different than artificially lowering prices by highly subsidizing them; that defeats the very purpose of free-trade !

Reminds me playing games using cheat codes.

 

[Armstrong]

Actually, Our Godowns are full and a good quantity of grain is rotting. Any rupee we get from those sales is a bonus for us.

Be that as it may; they are highly subsidized per tonne which might be great as a protectionist measures but does nothing so far as free-trade is concerned !

 

[sree45]

Iran has good railway links from other ports as well, sure transit cost will be higher but your govt. can cover up by further subsidizing.

Sure - Chahbhar will be game changer but still will be expensive routes for agriculture exports as compared to land route via Pakistan. That will be good for Pakistan as it will compensate Indian subsidies hence will give us little bit level playing field.

True. Asking Pakistan for transit is like asking Pakistan to shoot itself in the foot. GoI should look at alternatives.

 

[osama zafar]

I don't see why not we would get the transit fee too.

 

[Nova2]

Practically, everything in Afghanistan goes from Pakistan. From fuel, to light bulbs to large amount of food/cement/steel etc.

If India goes there, Pakistani businesses will lose out, it's a small market, very very small, but still it will a loss. Now, since most of these business owners have connections in Pakistan's government, chances of allowing unrestricted trade to India via Pakistan, are slim.

And loss would be because of the fact that Indian wheat is cheaper than that of pakistan,cos of the subsidy if i am not wrong? But wouldn't it generate any kind of revenue to the GoP and would bring in buisness for goods carrier,though it would be loss for farmers. Or am i missing something here?

 

[Donatello]

And loss would be because of the fact that Indian wheat is cheaper than that of pakistan,cos of the subsidy if i am not wrong? But wouldn't it generate any kind of revenue to the GoP and would bring in buisness for goods carrier,though it would be loss for farmers. Or am i missing something here?

Loss to private business owners.

If you make 10 crore a month, but you see losing even 1 crore per month, what would you do?
(Assuming you have deep pockets already and as such the lawmakers as well.)

 

[sree45]

Be that as it may; they are highly subsidized per tonne which might be great as a protectionist measures but does nothing so far as free-trade is concerned !

We are not asking for free-trade. We are willing to pay relevant transit fees.

But such a thing would be disastrous for Pakistani farmers and i don't think it woould happen.

 

[Armstrong]

We are not asking for free-trade. We are willing to pay relevant transit fees.

But such a thing would be disastrous for Pakistani farmers and i don't think it woould happen.

No one is talking about 'free-trade' I meant 'free movement of goods' based upon competitive strengths to the benefit of the stakeholders involved; protectionist measures hinder that needlessly !

If India produces cheaper goods than Pakistan than why shouldn't a Pakistani consumer benefit from that; on the other hand if that competitiveness is derived from but a subsidy slapped on by the Indian government than why should a Pakistani producer suffer accordingly ?

 

[Nova2]

Loss to private business owners.

If you make 10 crore a month, but you see losing even 1 crore per month, what would you do?
(Assuming you have deep pockets already and as such the lawmakers as well.)

Hmm,they would lobby hard for this request to be rejected.Shipping to Iran is the only way India can connect with Afghanistan.

 

[halupridol]

i am hopeful that PM Nawaz will allow us this opportunity