October 17, 2007

Pakistan proposes to import feed wheat

Pakistan's Ministry of Food, Agriculture and Livestock (MINFAL) have proposed importing feed wheat to relieve the pressure on available wheat stocks in the country.

Currently, poultry feed draws on wheat supplies that are also used for human consumption, this is creating supply problems and destabilising prices, the ministry said.

Wheat used for poultry feed is expected to rise 53.8 percent from 1.3 million tonnes last year to 2 million tonnes this year, according to MINFAL estimates.

Wheat supplies are subsidised in Pakistan to help the poor. However, instead of helping the needy as intended, the subsidised wheat supplies are bought up by chicken farms.

While the poor can barely afford to buy wheat supplies, their staple diet, the middle to higher income groups buy chicken meat, which are fed on subsidised wheat.

Chicken farmers switched to wheat, which became cheaper than corn or broken rice due to the latter's price hikes recently.