03/11/2012 (Newstrack India) - Pakistan is set to allow the use of land transportation to import agricultural goods from India - a move that would likely boost trade in food between the two countries and is vehemently opposed by farmers' lobbies in Pakistan.

According to sources, the Pakistan government has finalised a list of 16 items - including palm oil, cigar and cigarettes - that will be allowed for import from India, and subject to minor duties, reports The Express Tribune.

The Food Security Ministry is said to have signed off on allowing freer access to Indian farm goods.

"We have supported the import of agriculture products from India as Pakistani farmers would also have a big Indian market to export their products," Food Security Secretary Ahmad Bakhsh Lehri said.

The federal cabinet has already decided to grant Most-Favoured Nation status to India, which will be implemented by the end of December. It means that Pakistan will not discriminate against Indian goods compared to imports from other countries.

Farmers' groups, meanwhile, are up in arms at the prospect of having to compete with Indian products, which they say are heavily subsidised, rendering Pakistani products uncompetitive based on price.

Farmers groups argue that if Islamabad is going to liberalise agricultural trade with India, then it should try to match New Delhi in terms of the amount it spends on agricultural subsidies.

"If the government does not take the farmers on board, they will have no option by to take matters into their own hands, including physically blocking the imports of agricultural products from India to safeguard the interests of the farming community," said Chaudhry Hamid Malhi, president of the Basmati Growers Association.