Government's nod sought to import 0.1 million tons wheat

The Trading Corporation of Pakistan (TCP) has sought permission from the government to import 0.1 million tonnes brownish wheat from Russia and Argentina, sources told Business Recorder on Saturday. The TCP, in its summary for the Economic Co-ordination Committee (ECC) of the Cabinet, said that it has studied the international market of wheat and various varieties available there, finding out that Russian and Argentinean variety that is brownish but cheaper and best in quality with having similar colour and scent as Pakistan's domestic produce.
The summary carried a comparative study on wheat rates in the international market and strongly opposed import of white medium-soft variety for which Australia, Canada and the USA are the main sources.
The sources said the ECC would take up the TCP's summary when it meets some time next week and the recommendations, if approved, will follow issuance of Russian and Argentinean commodity specific tender.
The TCP authorities were convinced that issuance of Russian and Argentinean commodity specific tender will provide Pakistan a new market with more options for import of wheat if needed in the future.
The government had smelled shortage of wheat some time in the last quarter of 2004 and directed the TCP to import 1.5 million tonnes commodity in two phases-one million in the first and 0.5 million in the second phase.
The TCP took the directions and issued international tenders for the interested parties.
It has so far received 0.960 million tonnes wheat from various destinations and shipments of 0.440 million tonnes are in the pipeline. This improved wheat supply to the local market and helped the millers maintain flour (atta) supply to the retailers. Now only two months away from harvesting of the new crop, the provincial food departments have sufficient stocks to ensure releases to the millers.
The conditionality of medium white-soft commodity restricted Pakistan to a particular region and so kept aside many from the race. The market experts say that the TCP could get the commodity at much less rates in the absence of medium white-soft restriction, as the specified variety in no way was good than brownish variety for human consumption.
Just one shipment of 50000 tonnes Russian commodity, accepted by the TCP for $ 198 per tonne against $ 225 and $ 230 per tonne of 1.3 million tonnes medium white-soft wheat, confirmed the experts' views.