Pakistan is likely to lift a two-and-a-half-year ban on wheat export this month and will be eyeing the Indian market to sell its grain after a good harvest this year, an official said on Wednesday.
Muhammed Ismail Qureshi, permanent secretary at the food and agriculture ministry, said the latest estimates showed the country has a better-than-expected harvest of 21.7 million tonnes from the current 2006/07 crop.
In April the agriculture ministry estimated 20.5 million tonnes of output. Total annual domestic needs are 22 million tonnes.
"After a new estimate on the crop size, we would definitely have an exportable surplus of over 1.5 million tonnes as we also have carryover stocks of 2.1 million tonnes from the last year''s crop," Qureshi told Reuters from Islamabad.
"We are closely monitoring wheat demand in the international markets, including India, and will take a decision on exports in June...most likely after the budget." Qureshi said the government was also considering an Indian proposal to barter their sugar for Pakistani wheat.
"We are looking into all possibilities for wheat trade with India, and government-to-government barter is one of the options," he added.
"We can also participate in (Indian) tenders, but all will depend on the market conditions."
In 2004 Pakistan officially banned wheat exports and withdrew its export refund policy, under which traders got a maximum of 2,500 rupees per tonne on shipment of cargoes to cover transport and other costs.
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