Indian sugar industry officials say at least Rs 1,400 crore worth of sugar could have been imported between September 1997 and October 1998.

During discussions on commerce and trade with Indian officials last week, Pakistan had asked New Delhi to import more commodities from Islamabad.

Pointing to increased sugar exports from Islamabad, Pakistan authorities told Indian officials to expedite the backlog created in clearing the wagons carrying sugar.

"India has been tardy in unloading sugar consignments at Amristar. We have asked them to immediately clear it in order to avoid financial loss to our exporters," the sources said.

The slow clearance of wagons carrying sugar had also created lack of confidence among Pakistan exporters.

During 1997-98, Pakistan had imported goods worth 137 million dollars whileexporting items worth 35 million dollars. They, however, did not give any figure for the current fiscal.

Meanwhile, Indian industry has charged importers with indirectly financing the Pakistan army.

This follows purchase of sugar from an Pakistani army outfit, Rawalpindi cantonment unit of army welfare trust.

Agricultural and Processed Food Export Development Agency (APEDA), which registers the imports, when contacted said its job was only to register the shipments.

Amristar-based Kundan Rice Mill has contracted 60,000 tonnes of sugar worth Rs 62 crore from the unit.

All India Rice Exporters Association sources said the mill was an exporter, which had the prerogative to earn profit. The mills was not a permanent importer, they said.

Pakistan officials said it was left to the buyers to choose their sellers. Sources said the unit had entered the scene following sharp differences with exporters in Islamabad over payments.

APEDA has so far registered about 16.5 lakh tonnes of sugar for imports sinceSeptember 1997. Of this about 10 lakh tonnes had already landed with over two lakh tonnes coming from pakistan.

Faced with a glut in production, Indian sugar industry had already demanded raising import duty on the commodity by at least 50 per cent.