After a gap of three and half years, wheat export from Pakistan has resumed, as the first shipment of the commodity will sail today (Tuesday) from Port Qasim. "A vessel namely MV "Logonda" has been loaded with 27,000 tons of Pakistani wheat and ready to sail for Bangladesh.
This consignment has been booked by a Karachi-based exporter and will navigate on Tuesday morning," sources told Business Recorder on Monday night. On December 8, 2010 the Economic Co-ordination Committee (ECC) lifted three and half years ban on wheat export by allowing the private sector to export the commodity without government subsidy.
After lifting of ban a lot of foreign traders are willing to procure Pakistani wheat, which is being offered at an attractive price and after detailed dialogues first deal was finalised in the first week of January 2011. First consignment has been booked by a European company namely "AMEROPA" for Bangladesh and will sail today from Port Qasim Fauji Akbar Portia (FAP) Marine Terminal, which has over 120,000 tons of storage space.
Another ship for taking second delivery of 12,500 tons of wheat, is expected to reach Port Qasim today; they said and added that loading on second ship will start on Tuesday evening or Wednesday morning. Exporters said they are getting several queries from traders of different countries for wheat import as several countries are reportedly facing an acute shortage of wheat during this year.
"So far we (exporters) have booked more than half million tons wheat export orders from neighbouring countries," exporters said. They added that presently wheat export price is much better than 2007. In 2007, Pakistan exported wheat at an average rate of $201-212 per ton while currently wheat export prices stood at $320 per ton to $330 per ton in the international market. Currently wheat exporters are also vigilantly monitoring the price fluctuations in the international market and initial reports indicated that wheat crop in Australia has damaged, therefore it is highly likely that wheat prices in the world market may surge in next one month.
He said Pakistani wheat exporters have some reservations over wheat export policy, which is always unsustainable in Pakistan. In 2007 the federal government allowed wheat export in December 2006 and after six months (in May 2007) suddenly imposed ban on export, of which credibility of Pakistani exporters was damaged and still many buyers are reluctant to finalise deals.
"We can earn millions of dollars through wheat export but it needs a clear-cut policy, which comprise quantity and long-term policy, otherwise lifting of ban on commodity will be useless," he said.
Currently, the country has buffer stocks of the commodity and needs to sell out before the next crop, otherwise procurement of new crop could not be possible for provincial food departments and Pakistan Storage and Supply Corporation (Passco) because of short storage capacity, they said. Presently, Sindh food department has stock of one million tons, Punjab 3.5 million tons, out of which they want to export 0.5 million tons and one million tons respectively.
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