January 3, 2008

Pakistan seeking 610,000 tonnes of imported wheat in tenders

State-run Trading Corp. of Pakistan is seeking 610,000 tonnes of wheat in two separate tenders, bids for both of which will be accepted until Jan. 12.

The wheat prices will be on a cost and freight basis. The tenders didn't specify any delivery schedule.

According to a report by the US Department of Agriculture last week, "A continuing shortage of wheat and wheat flour, coupled with rising food inflation, have created an unenviable situation in the run-up to Pakistan's general elections."

The report added that since last October, Trading Corp. of Pakistan has negotiated contracts for wheat imports of 980,000 tonnes. The average import price has been US$474/tonne.

In addition, Pakistan will import an additional 500,000 tonnes of wheat to cover higher domestic demand and a local shortage, Food and Agriculture Minister Prince Muhammad Isa Jan Baloch said.

New wheat will start coming into the market in the last week of February from Sindh, which is expected to touch 24 million tonnes in the coming crop year beginning in February.

Agriculture Ministry officials said due to lower international production, wheat from Pakistan is heavily smuggled across borders into Afghanistan and India. Around 1.5 million tonnes of wheat flour is exported or smuggled to Afghanistan.

Locally, wheat supply was interrupted due to riots after the Dec. 27 assassination of former Prime Minister Benazir Bhutto and its prices went up, especially in Karachi.