Another 200,000 tonnes of wheat has been sold to overseas buyers in the past week, continuing heavy sales after the country started an export incentive programme, European traders said on Thursday. This brought foreign sales of Pakistani wheat since the export subsidy scheme started in January to about 500,000 tonnes.
More sales are expected in coming weeks as another 1.5 million tonnes of Pakistani wheat is set to be allocated to the new state scheme, traders said. Pakistan has been hardly visible in wheat export markets in recent years, with its main sales going to Afghanistan. But a bumper crop last year and large stocks led the government to introduce the subsidy scheme in January, sparking a series of large export sales in past weeks.
A cabinet committee in December approved a programme to export 2 million tonnes of wheat in the current financial year, with 1.5 million tonnes coming from the state of Punjab and 500,000 tonnes from the state of Sindh, Pakistan's Information Ministry said. "Demand from importers is very strong as the Pakistani wheat being offered is good quality with 11, 12 and even 12.5 percent protein content," one European trader said. "The 500,000 tonnes from Sindh was the first to be cleared for the export scheme and the Sindh wheat appears to have all been sold out."
"The remaining 1.5 million tonnes from Punjab is expected to appear in international markets in the next couple of weeks or so and there have already been some advanced sales in anticipation of this."
Traders estimate that a further 300,000 to 400,000 tonnes could be sold in coming weeks.
The sales have involved shipment in bulk carriers, shipping containers and also road transport to neighbouring countries, traders said.
Recent trades in containers were reported at $201 to $205.00 a tonne FOB Pakistan for shipment to Malaysia, Vietnam and other destinations. Bulk cargoes are being negotiated around $205 a tonne FOB. Other importing countries include Kenya, Bangladesh, Sri Lanka, Indonesia and Middle Eastern buyers, traders said.
Container shipments have started and bulk shipments are expected to begin in coming days. One vessel is expected to start loading 60,000 tonnes of wheat for Sri Lanka in Pakistan this week, traders said. Large volumes have also been sold for road transport to Afghanistan.