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ISLAMABAD: Pakistani traders have bought about 2 million tonnes of domestic wheat for export, and shipments have already started government officials and traders said on Tuesday.
Pakistan, Asia's third-largest wheat producer, in December lifted a ban on exports imposed in 2007 because of domestic shortages and high prices. Stocks soared after a bumper crop of 23.86 million tonnes in 2009/10 added to a carryover of 4.2 million tonnes from the previous crop.
The central Punjab province, which grows most of the country's wheat, intends to export over 2 million tonnes from its surplus stocks. It has already sold 1.4 million tonnes of that to local traders for export, provincial Food Minister Abdul Ghafoor said.
A Karachi-based trader, Javed Thara, confirmed deals with the Punjab government and said traders had also bought some 600,000 tonnes from Sindh, the second-largest wheat producer.
“Traders have signed export deals with foreign buyers for up to 700,000 tonnes, out of which some 40,000 tonnes have already been shipped out,” Thara said.
He expected some 100,000 tonnes of wheat to be shipped this week to Bangladesh and some Middle Eastern countries including Jordan.
Johar Ali Qandhari, a wheat trader and chairman of the Korangi Association of Trade and Industry, said that Pakistan had recently sold wheat in the international market at prices ranging between $333 and $338 a tonne FOB (freight on board).
Pakistan consumes about 22 million tonnes of wheat annually. Sowing for the 2010/11 crop is finished, and Pakistan expects a harvest of as much as 23.5 million tonnes against a targeted 25 million tonnes. A carryover from previous harvests means there will still be enough surplus for exports, however, industry officials say.
The exact crop estimates are expected to be available by March.
