Govt still considering wheat exports
ISLAMABAD:
Pakistan is still considering exporting some surplus wheat to capitalise on higher global prices sparked by Russia's move to halt grain exports, officials said on Friday. "The volume can be just above half a million tons," one official said.
Pakistan, Asia's third-largest wheat producer, harvested 23.8 million tons of wheat from the 2009-10 crop and, along with a carryover stock of 4.22 million tons, has a stock of more than 28 million tons. Annual demand is around 23 million tons.
The government in April decided to export up to two million tons of wheat, but has since withheld plans mainly because of low prices in the international market before this week's rally.
Officials in the food ministry said the country might not export that whole amount to ensure supplies after the worst floods in 80 years, which affected millions of people and killed over 1,600.
"While it is now unlikely Pakistan will export two million tons because of the recent floods, there is still an option to export some, but there is no final decision," said one official who declined to be named as he was not authorised to speak. "It could be in the range of 500,000 to 700,000 tons," he added.
Another official said that there was no further development with regard to exporting wheat, but that the option was "still under consideration".
The government had also been discussing exporting surplus wheat to Iran, Iraq and Bangladesh on a government-to-government basis but no decision has yet been made.
Pakistan's poor storage capacity has been a factor in the decision to export excess wheat. Some 78,000 tons of the grain had been either destroyed or damaged in recent monsoon rains in Punjab.
The government may have to divert some wheat supplies to the northwestern Khyber-Pakhtunkhwa province, the hardest-hit region by the floods which now faces the prospect of severe food shortage.
Wheat is a staple and any shortages or steep rise in prices will fuel anger among people. A ban on wheat exports was imposed in 2007 because of shortages and high prices.
Published in The Express Tribune, August 7th, 2010.
Pakistan is still considering exporting some surplus wheat to capitalise on higher global prices sparked by Russia's move to halt grain exports, officials said on Friday. "The volume can be just above half a million tons," one official said.
Pakistan, Asia's third-largest wheat producer, harvested 23.8 million tons of wheat from the 2009-10 crop and, along with a carryover stock of 4.22 million tons, has a stock of more than 28 million tons. Annual demand is around 23 million tons.
The government in April decided to export up to two million tons of wheat, but has since withheld plans mainly because of low prices in the international market before this week's rally.
Officials in the food ministry said the country might not export that whole amount to ensure supplies after the worst floods in 80 years, which affected millions of people and killed over 1,600.
"While it is now unlikely Pakistan will export two million tons because of the recent floods, there is still an option to export some, but there is no final decision," said one official who declined to be named as he was not authorised to speak. "It could be in the range of 500,000 to 700,000 tons," he added.
Another official said that there was no further development with regard to exporting wheat, but that the option was "still under consideration".
The government had also been discussing exporting surplus wheat to Iran, Iraq and Bangladesh on a government-to-government basis but no decision has yet been made.
Pakistan's poor storage capacity has been a factor in the decision to export excess wheat. Some 78,000 tons of the grain had been either destroyed or damaged in recent monsoon rains in Punjab.
The government may have to divert some wheat supplies to the northwestern Khyber-Pakhtunkhwa province, the hardest-hit region by the floods which now faces the prospect of severe food shortage.
Wheat is a staple and any shortages or steep rise in prices will fuel anger among people. A ban on wheat exports was imposed in 2007 because of shortages and high prices.
Published in The Express Tribune, August 7th, 2010.