LAHORE – Provincial Food Minister Chaudhry Abdul Ghafoor has said that an agreement has been sealed between Punjab Food Department and private buyers for the purchase of one million tonnes of wheat, which will be exported as wheat price in the international markets has increased.
On the other hand, wheat exporters believe that the provincial government is looking towards wheat export through rose-tinted glasses. Exporters estimate Pakistan cannot export more than 300,000 tonnes of wheat by April 30, as the country has limited handling and loading capacity at ports in Karachi.
Pakistan Flour Mills Association (PFMA) former Chairman Bilal Aslam Sufi, while speaking to Pakistan Today, said that though wheat price in the international markets have risen, it is difficult for Pakistani exporters to book wheat export orders as there is no substantial profit margin in the export of wheat.
He said that the provincial Food Department was offering wheat to private sector around $290 per tonne, which will cost between $325 and $330 per tonne after paying cleaning, packaging and handling charges. He said the government had announced a rebate of Rs 600 per tonne on export of 100,000 tonnes of wheat to make the option more attractive to the private sector.
He stressed that this was not enough for exporters as wheat prices in international market are presently hovering between $340 and $360 per tonne. He said that despite the increased prices in international markets and government’s consistent efforts, Pakistan will hardly be able to export in excess of 30,000 tonnes. There is a lack of enthusiasm on the part of the private sector with regards to the export of wheat, he underlined.
Another wheat exporter said that the government wanted to get rid of wheat stocks desperately as the new crop is due in the second quarter of the calendar year. He seconded the view that in present circumstances, it is presently difficult to export wheat from Pakistan. However, it is interesting to note that wheat prices in the international markets have almost doubled during the last six months.
Figures show that wheat price in the international market has swollen by 94.70 percent. Figures indicate that in June 2010, the commodity was available at $157.67 per tonne, which settled at $306.99 per tonne in December 2010, while the latest figures showed that wheat orders were being booked at $340 to $350 per tonne.
Government wildly optimistic about wheat prospects: exporters
