October 22, 2010

Pakistani government to set wheat production target at 25 million tonnes

The Pakistani Government is expected to set a wheat production target at 25 million tonnes on a sowing area of 9.045 million hectares during the upcoming Rabi season in 2010-11.

Wheat production targets in Punjab are expected to be set at 19.205 million tonnes; Sindh at 3.682 million tonnes; Khyber Pakhtunkhwa at 1.210 million tonnes; and Balochistan at 0.903 million tonnes.

According to the Federal Committee on Agriculture (FCA), the wheat production target in year 2009-10 was fixed in line with the Task Force on Food Security's (TFFC) recommendation of 4% per annum growth in wheat production. The wheat target for 2010-11 is identical to last year's target, which was not achieved due to the post flood situation in the country. Last year, the government fixed wheat targets at 25 million tonnes but actual production stood at 23.8 million tonnes.

Pakistan's government had earlier allowed export of wheat products to the tune of 200,000 tonnes. Currently, the government is considering a proposal for the disposal of surplus stocks with a greater focus on domestic friendly measures.

The current international wheat prices are at US$239 per tonne as of July 29. The cost of domestic wheat at the announced procurement price of PKR950 (US$11.06) per 40 kilogrammes is US$277 per tonne. However, due to the current flood, wheat exports are banned.

Pakistan harvested a good wheat production of 23.86 million tonnes from an area of 9.045 million hectares during 2009-10 which was lower by 0.7% compared to last year's (2008-09) achievement of 24.03 million tonnes.

Decline in wheat production in 2009-10 was mainly due to no rains from October to January, shortage of irrigation water, and erratic temperature rise during last week of March 2010. Wheat production in the Barani areas was adversely affected.