KARACHI: Pakistani traders have formally requested the federal government to allow the export of wheat and wheat products aimed at capitalizing on surplus stocks and enhance foreign exchange earnings.
According to Cereal Association of Pakistan (CAP), with massive domestic wheat production available stocks are exceeding the country’s requirements and traders see a lucrative opportunity in the international markets.
In a letter to Prime Minister Mian Muhammad Shehbaz Sharif by Muzzammil R Chappal, Chairman CAP has stated that with sufficient wheat crop overall wheat stocks in the country reached 36.119 million metric tons (MMTs) as of May 1, 2024, including 31.44 MMTs wheat production this year (2024) and 4.6 MMTs carry forward stocks lying with Passco, private sector and provinces.
The available wheat stocks are more than estimated domestic consumption of 32.119 MMTs including 28.699 MMTs for human consumption, 1.5 MMTs for seed & feed and 2 MMTs as strategic reserves.
According to CAP, about 3.92 MMTs to be surplus wheat stocks and exporters are ready to commence exports of wheat and wheat products through sea and land routes immediately and ensure no shortage locally.
Traders said that currently, Pakistani wheat prices are at a very reasonable level and Pakistan can compete in the export market with healthy crop output.
Currently, Black Sea Origin including Russia and Ukraine are ending the current crop cycle awaiting their new crops that become available for exports August onwards, it maintained.
Muzzammil R Chappal Chairman CAP, in his letter to PM, has congratulated all stakeholders including the agriculture departments of all the provinces especially the Punjab Agriculture Department and Sindh for achieving the all-time highest production of wheat crop over 30 million metric tons despite many challenges.
Based on this crop cycle, Pakistan has a rare and unique opportunity to re-enter the export market immediately for prompt or spot delivery to help address the country’s surplus wheat and grab decent rates and ensure repatriation of export proceeds back to Pakistan through official banking channels.
In view of the current wheat stock position, CAP has urged the Prime Minister to take a decision in the best national interest and allow the export of wheat and wheat products by issuing the official notifications.
According to CAP, the government’s decision not only helps to increase the country’s exports, but also supports the farmers to get a good price for their produce.
As per statistics, Punjab has carry forward stocks of 2.34 MMTs wheat and fresh crop of 24.24 MMTs as against consumption of 14.68 MMTs. Sindh has produced 4.20 MMTs with carry forward stocks of 0.51 MMTs wheat as against consumption of 6.40 MMTs. KPK has carry forward stocks of 0.13 MMTs and fresh crop of 1.58 MMTs and its estimated wheat consumption is about 1.71 MMTs and Baluchistan’s demand is 1.71 MMT as against 1.42 MMTs production in this year and 0.089 MMTs carry forward stocks.
Copyright Business Recorder, 2024
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