In January, the Economic Coordination Committee (ECC) had allowed export of 1 million tons of wheat, which was later doubled. PHOTO: AFP
ISLAMABAD:
The Ministry of National Food Security and Research has asked concerned counterparts to expedite the process of exporting surplus wheat before the new crop reaches the market by mid-March.
The reason for speeding up the wheat export is to avoid any possible price crash once the new crop reaches the market, said an official at the Ministry of National Food Security and Research. “But, it is feared that we will not be able to export the entire surplus since our old clients have shown little interest due to high prices.
“If we fail to export the surplus stock, it is likely that the wheat support price would crash domestically and, ultimately, the farmers would avoid growing it in the next season,” he added.
In January, the Economic Coordination Committee (ECC) had allowed export of 1 million tons of wheat, which was later doubled.
The ECC also approved a subsidy of $45 per ton in Sindh and $55 in Punjab to bring down the price at par with the international market rate.
Currently, there is a surplus of almost 3 million tons in the country, out of which 1.2 million tons has been allowed to export. The estimated cost of subsidising the wheat export is around Rs7 billion.
National Food Security and Research Minister Sikander Hayat Bosan also held a meeting with Tajikistan Ambassador and offered him to import wheat from Pakistan.
Published in The Express Tribune, March 1st, 2015.
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