April 10, 2007
Pakistan's TCP to seek permission on wheat exports
The state-run Trading Corporation of Pakistan (TCP) said on Monday (April 9) it would seek an approval from the government to restart wheat exports after a good harvest this year left a surplus of more than 2 million tonnes.
Wheat exports are managed by private traders, and officials said the TCP, a trading agency involved in the import and export of various commodities, was disqualified from the business to encourage private exporters.
Abdul Malick, chairman of the TCP, said he would press the government to allow the agency to export wheat as it already shipped out 1.5 million tonnes in the past, stating "they deserve to be a part of wheat trade in Pakistan because we are the most experienced player in this business".
The government kept out the TCP of exports, which sold 1.7 million tonnes of wheat in the 2002/03 fiscal year (July-June) to the Middle East and Africa.
Pakistan annually consumes 22 million tonnes of wheat.
Malick said the TCP was discussing export prospects with state-run Pakistan Agriculture Storage and Services Corporation and also with the government of Punjab province, which he said were keen to engage the grain agency to export surplus stocks.
The discussion is in TCP's preparation of assessing the international market should the government requires them to do exports, said Malick.
Some government officials said private traders had not been performing well and the TCP should be allowed back into the export business.
The government had set a deadline of June to ship the 800,000 tonnes allowed for export but only 200,000 tonnes of shipment deals had been finalised.
Industry officials also said the government, which was holding stocks in excess of buffer norms, would involve the TCP in the trade.
Malick said the TCP would invite bids from international firms if the government gave the go-ahead. He added that the Middle East and also countries in South Asia have expressed interest to purchase wheat from TCP.
