'Asia's wheat demand met by Pakistan'

Pakistan approved wheat exports in December and shipments began the following month.


Ppi April 18, 2011

SINGAPORE: Asia's immediate wheat demand is being met by an ample supply from Pakistan, which is exporting large quantities to make way for the new bumper harvest, Dow Jones quoting trading executives said on Monday.

"Pakistan has filled a crucial gap in Asian wheat trade due to the absence of supply from the Black Sea region," said a Singapore-based executive working for a global trading company.

If Pakistan had not permitted wheat exports during this period of tight global supply, price conscious buyers in South Asia and Southeast Asia would have had to turn to costly alternative supplies from Canada, the US and Europe.

The absence of Pakistan would have also increased the demand pressure in Australia, where ports are already facing congestion and delays in moving wheat from upcountry warehouses.

Pakistan approved wheat exports in December and shipments began the following month. In less than four months it has shipped out an estimated 1.16 million metric tons of wheat.

International Grains Council has projected Pakistan's wheat exports in the year ending June 30 at 1.6 million tons, the highest in at least four years. Close to 1 million tons of Pakistan's wheat has been exported in bulk shipments and 160,000 tons in containers, said Muhammed Najib Balagamwalla, chairman of Seatrade Group.

Bangladesh has emerged as the major buyer for Pakistan's wheat, purchasing more than 700,000 tons, traders said. The country is one of the world's largest wheat importers, buying around 3.0 million-3.5 million tons of wheat annually.

Since Russia banned grain exports last August and exporters in Ukraine defaulted on several deals, Bangladesh purchased cargoes from a variety of origins, including Germany, Canada, Brazil & Australia, before finding a less expensive source in Pakistan. Pakistan's milling wheat is among the cheapest in the world. Even though bulk sales are to Bangladesh, thousands of containers also been shipped to Southeast Asian countries and to United Arab Emirates.

Early this year, Pakistan sold wheat around $329 to $335 a ton, free on board, while recent sales have been around $300 to $310 per ton.

With freight charges of around $4 to $18 per ton for containers from Pakistan, Southeast Asian buyers have locked in purchases at less than $320 per ton on a cost-and-freight basis for prompt shipments.

One of the transnational grain exporters said that flour millers in Vietnam & Malaysia, which require limited volumes on short notice, prefer Pakistan's grain. Export of existing wheat stocks of Pakistan will make room for bumper harvest that is under way.

COMMENTS (5)

Hamid Javaid | 12 years ago | Reply Total Export (July-March, 2011) = USD 17,945 Millions Total Food Group Export (July-March, 2011) = USD 2,802 Millions Percentage of Food Export in Total Export = 15.61% The only reason is that while our countrymen are facing near starvation all excess production is being exported to other countries which may have oil but no food. Prime cases here being Afghanistan and the Middle East who are our biggest consumers. In order to bring down prices in the country, Pakistan should, with immediate effect, put a ban on export of all basic food items including wheat, rice, sugar, poultry, meat, fish and all vegetable and fruits with a clear warning to all belonging to the production and manufacturing sectors that the ban will remain until the food prices of all these items are brought at a level where the average Pakistani can afford to feed a minimum family of five. As soon as the ban comes into place we will see an immediate reduction in the prices of all consumer based products. While this may result in a temporary loss of exports of about US1 billion a year it will immediately benefit 160 million people. At the end of the day, the choices we make and the decisions we take are up to us. What is more important — $1 billion or 160 million Pakistanis? Yesterday Putin rightly pointed out "If you are weak, there is always someone who will come in and unequivocally recommend which way to go, what policy to conduct, what path to choose" Really its a matter of choice for the my country men "which way to choose" Boom or Doom
arman | 12 years ago | Reply Ok!! now pakistan has produced the biggest yield of wheat crop,It should shut the mouth of those jehadi and radical people who believed that india stopped water supply to pakistan!! without water from indian rivers,pakistan cant even have 10% harvest!!
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