Government eyes Gulf for wheat export

Published: February 14, 2016
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PHOTO: REUTERS

PHOTO: REUTERS

ISLAMABAD: The federal government is keen on inking agreements with Gulf countries to export the surplus stock of wheat as Pakistan looks to avail opportunities available in foreign markets.

In this regard, the Ministry of National Food Security and Research has written a letter to the foreign office to push the proposal through embassies and consulates in these countries to strike bilateral agreements.

Pakistan plans negotiations with Afghanistan over wheat export

“The federal government thinks that since Gulf countries do not produce wheat and depend on imports, Pakistan could be an ideal partner under feasible bilateral agreements,” said a senior official.

“In return, Pakistan expects both cash and kinds, including fertiliser and oil.

“Since we have good relations with these Islamic countries, why should we not ink bilateral agreement to export high quality wheat?”

Target countries where Pakistan wants to ship its wheat to include Saudi Arabia, UAE, Qatar and Kuwait, where wheat is imported, largely from the US and Canada.

Since the wheat price plummeted in the international market, a large quantity of surplus wheat has been lying in the country and the federal government has been mulling over different options to sell off the stock prior to arrival the next crop.

The Economic Coordination Committee of the cabinet has also approved subsidy on wheat exports to bring it at par with the international rate.

Pakistan’s food, beverage exports to UAE increase 27%

According to statistics, the current wheat stock in Pakistan stands at around 7 million tons, compared to 6 million tons reported in the corresponding period last year. Alongside, surplus produce of wheat is expected during 2015-16 because of better water availability and subsidised DAP.

Published in The Express Tribune, February 14th, 2016.

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Reader Comments (3)

  • Tore
    Feb 14, 2016 - 5:31AM

    Pakistam should have a policy on food security, many western countries do have that. Pakistan should have fezility to store 1 or 2 years wheat, rice, potato, and other products which can be stored in cold storages etc.

    One never know what next year eill bring , floods, war, water shortage or any other unexcpexted happning.

    2.
    Pakistan should have a mechanism for price controll. Goverment should buy everything from the farmers on fix price then sell to pakistanies on agreed price.

    Rhis way all farmers will be able to find customer and less food will be wasted and goverment would get controll over prices.Recommend

  • abreez
    Feb 14, 2016 - 10:51AM

    GOP can encourage by road travels to Europe via Iran and Saudi Arab and GCC countries via Oman. If this dream becomes a reality then GOP will import different food items and Pakistani farmers will get maximum price of their crops, but I think that bluff master is only interested in different bluffs.Recommend

  • Parvez
    Feb 14, 2016 - 2:03PM

    This has happened in the past many a time……wheat get exported cheap under garb of excess stock / earning foreign exchange etc……then gets rejected for substandard quality ( why no pre shipment inspections ? )…….then the same wheat either goes elsewhere even more cheaply or returns to Pakistan. The beauty is that all the players are one big happy ‘ family ‘ because they all prosper while Pakistan loses. Recommend

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