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The private sector stakeholders on Monday proposed the government to distribute up to 2 million tons of wheat and flour among the Internally Displaced Persons (IDPs) and aid to Afghanistan rather allowing its export.
"Government should distribute 1.5 million to 2 million tons wheat and flour amongst the IDPs through the United Nation (UN) and aid to Afghanistan against funds from the USA, Britain, EU and other friendly countries under World Food Programme (WFP)," said one of the stakeholders.
This is first time in history of Pakistan that the government took a decision in favour of farmers by increasing the Guaranteed Support Price (GSP) of wheat of Rs 950/- per 40-kg after which the country has produced bumper crop. "Now we hope that the government does not make a mistake of allowing export of wheat or wheat flour as this in today's world market will not be possible unless government subsidies so why do so," he argued.
Market players are also of the view that if the government decides against export, flour mills will run on 100 percent capacity and create local Jobs and also further improve the life style of farmers and encourage them to grow more wheat in next season.
If Pakistan continues to grow more wheat, it will become leading wheat importing country in future as Pakistan's quality of wheat is much superior to any country of the world. Market players further argued that If today government decides to export wheat, its price will be around $332- 340. It will not be competitive as neighbouring India which aims to export 2 million tons and their prices are lower. Australia, USA, EU, Canada and Black Sea all have good stocks and reasonable crops in prospect.

Copyright Business Recorder, 2009

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