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Punjab to export three million tons of wheat | Business | DAWN.COM
KARACHI: Exporters have finalised deals for 30,000 tons of wheat with the Sindh government at an issue price of Rs25,500 per ton. Though belated, wheat export from current crop would help create some physical and financial space for new crop due next March, exports told Dawn on Thursday.
Exporters said after the federal government allowed wheat export about two weeks back the Punjab and Sindh food department officials immediately started approaching exporters and held several meetings to make up with the lost time.
However, taking advantage of the proximity of distance with port city of Karachi, exporters preferred to first lift wheat stocks from Sindh government which plans to dispose of around 0.6 million tons out of total stocks of around 1.2 million tons. This will help them save around Rs150 in cartage per wheat bag against Punjab wheat.
Against the support price of Rs950 per maund or Rs24.37 per kg, the Sindh government is selling wheat at Rs975 per maund or Rs25.50 per kg. In short, Sindh is charging Rs25,500 per ton with bag (cost Rs1125) from exporters.
The Punjab government is holding huge stocks of around 5.8 million tons and plans to export around two to three million tons before the arrival of new crop to reduce financial cost and physical space.
However, the Punjab government has fixed issue price at Rs1000 per maund or Rs26060 per ton, including Rs1060 for bags and after including cartage charges the Punjab wheat becomes even costlier by Rs260 per ton form Sindh wheat.
According to some estimates, the Punjab government is presently incurring financial cost of around Rs70 million per day or Rs2.5 billion per month on account of mark-up alone on wheat stocks. Against this the Sindh government having much less stocks is incurring Rs10 million financial costs.
Johar Ali Kandhari, a spokesman for Pakistan Flour Mills Association (PFMA), told Dawn that Pakistan wheat is as good as Hard Red Winter (HRW) wheat and in some cases its gluten contents are highest in the world. However, absence of storage facilities does not allow us to store the wheat as per quality grades.
He urged the government to be persistent in the wheat export policy and should take decision in advance in case of discontinuing exports so that countrys world commitments do not fall victim of sudden decision as was witnessed in 2001-02 and 2007.
Though most appropriate time for wheat export was August-September period when world prices were at peak $400 per ton but Mr Kandhari hoped that exporters may still manage to get good price which is hovering around $335 to $350 per ton.
He further said that since Russia has imposed ban on wheat export after the crop was badly damaged by recent wild fire and Central Asian Countries are currently facing access into world market due to frozen seas paralysing sea ports, therefore, Pakistan has an opportunity to sell wheat in the world market.
Even countries, like Turkey and Ukarain, leaders in supply of wheat products in the world badly need wheat after their supplies from CIS countries have been hampered by harsh winter weather, he added.
Presently, he said there was a strong demand of wheat from Bangladesh and felt that traditional markets, like Dubai, Sharijah and Far Eastern countries, would also create demand for wheat.
KARACHI: Exporters have finalised deals for 30,000 tons of wheat with the Sindh government at an issue price of Rs25,500 per ton. Though belated, wheat export from current crop would help create some physical and financial space for new crop due next March, exports told Dawn on Thursday.
Exporters said after the federal government allowed wheat export about two weeks back the Punjab and Sindh food department officials immediately started approaching exporters and held several meetings to make up with the lost time.
However, taking advantage of the proximity of distance with port city of Karachi, exporters preferred to first lift wheat stocks from Sindh government which plans to dispose of around 0.6 million tons out of total stocks of around 1.2 million tons. This will help them save around Rs150 in cartage per wheat bag against Punjab wheat.
Against the support price of Rs950 per maund or Rs24.37 per kg, the Sindh government is selling wheat at Rs975 per maund or Rs25.50 per kg. In short, Sindh is charging Rs25,500 per ton with bag (cost Rs1125) from exporters.
The Punjab government is holding huge stocks of around 5.8 million tons and plans to export around two to three million tons before the arrival of new crop to reduce financial cost and physical space.
However, the Punjab government has fixed issue price at Rs1000 per maund or Rs26060 per ton, including Rs1060 for bags and after including cartage charges the Punjab wheat becomes even costlier by Rs260 per ton form Sindh wheat.
According to some estimates, the Punjab government is presently incurring financial cost of around Rs70 million per day or Rs2.5 billion per month on account of mark-up alone on wheat stocks. Against this the Sindh government having much less stocks is incurring Rs10 million financial costs.
Johar Ali Kandhari, a spokesman for Pakistan Flour Mills Association (PFMA), told Dawn that Pakistan wheat is as good as Hard Red Winter (HRW) wheat and in some cases its gluten contents are highest in the world. However, absence of storage facilities does not allow us to store the wheat as per quality grades.
He urged the government to be persistent in the wheat export policy and should take decision in advance in case of discontinuing exports so that countrys world commitments do not fall victim of sudden decision as was witnessed in 2001-02 and 2007.
Though most appropriate time for wheat export was August-September period when world prices were at peak $400 per ton but Mr Kandhari hoped that exporters may still manage to get good price which is hovering around $335 to $350 per ton.
He further said that since Russia has imposed ban on wheat export after the crop was badly damaged by recent wild fire and Central Asian Countries are currently facing access into world market due to frozen seas paralysing sea ports, therefore, Pakistan has an opportunity to sell wheat in the world market.
Even countries, like Turkey and Ukarain, leaders in supply of wheat products in the world badly need wheat after their supplies from CIS countries have been hampered by harsh winter weather, he added.
Presently, he said there was a strong demand of wheat from Bangladesh and felt that traditional markets, like Dubai, Sharijah and Far Eastern countries, would also create demand for wheat.
no bro you please re read it!! pakistan is exporting to the world market! "you cannot export" from one province to another bro! we are one country!
