April 26, 2007

Pakistan may export up to 1 million tonnes of wheat by June 15

Pakistan may export up to 1 million tonnes of wheat in the first half of the year, an industry official said.

The export policy would undergo a review by the government after Jun 15, the official said. He added that the government is expected to take stock of the domestic situation before allowing further exports.

So far, 250,000 tonnes have already been exported, said Mohammad Yusuf, chairman of the Karachi chapter of the Pakistan Flour Millers Association.

Yusuf added that at present, the free-on-board price of Pakistani wheat is around PKR11,400/tonne (US$187.8), and exports have not resulted in any rise in domestic wheat flour prices.

Pakistan is currently harvesting its wheat crop, which is likely to increase 3.7 percent to 22.5 million tonnes compared with 21.7 million tonnes last year.

Pakistan is now seen as a major competitor in the world stage as wheat production increases around the world. Its emergence could see the prices of wheat being pushed down, traders said.