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Pakistan plans wheat exports to India this year

Sources said the bumper wheat crop will help the government to export it to India and some other neighbouring countries as well.

The government has already allowed the private sector to export 500,000 tonnes of wheat and would be ready to facilitate its export to India by sea or by rail, secretary food and agriculture Muhammad Ismail Qureshi said.

He said the total export could go up to one million tonnes this year when final wheat production estimates are available. He said India has floated tenders for import of one million tonnes of wheat and Pakistani private sector could be at an advantageous position to compete international wheat price because of lower transportation costs. There is no tax or duties on export of wheat.

Agricultural Development Commissioner Qadir Bakhsh Baloch said that this is first time Pakistan has allowed wheat export to India. Last week, Prime Minister Shaukat Aziz formally approved the export of 500,000 tonnes of wheat to neighbouring countries, including India and Afghanistan.

The government is moving carefully with export projections so that domestic wheat and flour prices are not increased artificially by the black marketers, another official said. At the same time, the domestic prices could crash below Rs425 per 40kg support price announced by the government for farmers if exports are delayed. We will announce new plan for more wheat exports after finalisation of crop figures, food minister Sikandar Hayat Bosan said last week.

The government is expecting that wheat production would convincingly exceed 23 million tonnes, surpassing the 22.5 million tonnes target.

Baloch said the private sector had been asked to procure 300,000 tonnes of wheat form Pakistan Agricultural Storage and Services Corporation and 400,000 tonnes from Punjab Food Department. He said Pakistan has a confirm demand of one million tonnes of wheat from India.

Sources said the State Trading Corporation of India had floated wheat import tenders of one million tonnes because of lower production than consumption to meet its rising demand. Besides on transportation cost, India could also save time in importing wheat from Lahore and Karachi to Delhi and Mumbai through rail and sea routes respectively.