The government has decided to export 2 million tons of wheat and constituted a Committee headed by Advisor to Prime Minister on Finance Dr Abdul Hafeez Sheikh to explore viable options in the wake of declining wheat price in the international market, sources told Business Recorder.
They said that the meeting chaired by Prime Minister Syed Yousaf Raza Gilani was given a holistic view of available wheat stock, options to dispose off the carryover stock as well as about the trend of wheat price in the international market. Those who attended the meeting were Chief Minister Punjab Mian Shahbaz Sharif, Federal Minister for Food and Agriculture, Nazar Muhammad Gondal, Advisor on Finance, Abdul Hafeez Sheikh, Senator Ishaq Dar, Leader of Opposition Chaudhry Nisar Ali Khan, Secretaries Finance, Food and Agriculture and Chief Secretary Punjab.
Sources said the meeting was informed that the wheat price in the international market is significantly less than the domestic support price of wheat. The meeting constituted a committee with Advisor to Prime Minister on Finance in the chair and representatives of Ministry of Commerce and Food and Agriculture its members to explore other options.
They said that the other options might include government level contacts with countries in need of wheat. They said that Afghanistan, Bangladesh and Iran are in need of wheat and could be approached at government level. The committee would also explore possibility of export of wheat and wheat products through private sector by offering incentives.
Sources said that the total wheat stock was 4.33 million tons on April 4 and even daily release of 30,000 tons till April 15 would leave about 4 million wheat stocks as carryover while wheat production for 2010 is expected to be 23.864 million tons.
With the arrival of new wheat production and carryover stock, the available wheat in the country would be 27.86 million tons against the requirement of about 22 million tons. Excluding strategic reserves and other usage the government would have more than 2 million tons of surplus wheat to export. According to the press statement, the Prime Minister said that the benefits of the growers and small farmers have to be protected while finalising the policies relating to agricultural commodities particularly wheat.
The Prime Minister was chairing a special meeting to review the current wheat stock position and assess the production of new crop. It was decided that fiscal and storage space would be created to export up to 2 million tons wheat at the earliest. It was observed that the wheat production is good but less than the last year production. The efforts of provincial governments and Federal institutions in managing the last year''s wheat crop were greatly appreciated.