Govt asked to allow export of surplus wheat

Published June 25, 2024
CEREAL Association of Pakistan Chairman Muzammil Chappal has claimed current wheat stocks stand at 36 million tonnes, around 3.9m tonnes more than country’s annual consumption of 32m tonnes.—Dawn/file
CEREAL Association of Pakistan Chairman Muzammil Chappal has claimed current wheat stocks stand at 36 million tonnes, around 3.9m tonnes more than country’s annual consumption of 32m tonnes.—Dawn/file

KARACHI: As the outcome of the caretakers’ wheat import scandal is still pending, traders are now urging the government to allow export of wheat and its related products.

Cereal Association of Pakistan (CAP) Chairman Muzammil Chappal claimed that the country has a surplus of 3.9 million tonnes of wheat, and the association has asked Prime Minister Shehbaz Sharif to allow its export immediately.

He said the country has 36m tonnes of wheat stocks (31.4m tonnes of local production and 4.6m tonnes of carry forward stock), much higher than the annual consumption of 32m tonnes.

Mr Chappal said wheat exports would help growers get good prices, as they have so far failed to get handsome prices for their produce.

He also informed the Ministry of National Food Security and Research that based on the tentative freight-on-board (FOB) rate of $260 per tonne, wheat export of 500,000 tonnes would fetch $140 million while 250,000 tonnes of maida and fine flour would earn $87m each depending FOB rate of $350 per tonne.

He said the ministry may define the quantity and time period for exporting wheat and related products as the association’s members are ready to play their role and have some potential buyers in the regional countries.

Mr Chappal said Pakistan has a limited time window i.e. June to August to fetch a good price for exporting wheat and products.

After getting permission from the caretaker government, the private sector of Pakistan imported 3.536m tonnes of grain from Russia and Ukraine costing over $1 billion from September 2023 to April this year.

Published in Dawn, June 25th, 2024

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