January 31, 2005

 

 

Pakistan to issue 100,000T wheat import tender in February

 

The state-run Trading Corporation of Pakistan (TCP) will issue a tender to import 100,000 tons of Russian and Argentinean origin milling wheat in February.

 

''We have asked certain approvals from the Economic Coordination Committee on the planned tender and as soon as we get approvals, a tender will be issued,'' Masood Alam Rizvi, chairman TCP said. The committee is Pakistan's top decision-making body on economic issues.

 

''Hopefully we will be in the market in February, but no date has been fixed as yet,'' he added.

 

TCP had earlier planned to issue the tender in January.

 

Rizvi said TCP was exploring cheap suppliers for quality wheat by issuing a tender for Russian and Argentinean origin wheat. The wheat market is traditionally dominated by the United States, Canada and Australia.

 

''We want to minimise our dependence on Australian and US origin wheat and these specific tenders would help us in finding new suppliers,'' Rizi said.

 

The tender is part of Pakistan's plan to import 500,000 tons of wheat to build up strategic reserves after a shortfall in production this year.

 

Pakistan is expected to harvest 20.15 million tons during the current 2004/05 (Nov-April) crop year, short of domestic requirements.

 

In December TCP purchased 400,000 tons of wheat at $204.50 a ton C&F Karachi, which included 250,000 tons from the Australian Wheat Board and 150,000 tons from the Canadian Wheat Board.

 

Pakistan consumes a little over 20 million tons of wheat annually.