November 8, 2010

Pakistan likely to export 2.5 million tonnes wheat

The Punjab state has asked the Pakistani government for permission to export about 2.5 million tonnes of surplus wheat, provincial authorities said Thursday (Nov 4), as the country prepares to plant the next crop.

Pakistan deferred plans in August to export two million tonnes of surplus wheat, after summer floods washed away at least 725,000 tonnes of the grain and raised concern about the next crop.

Traders say that despite flood damage, Pakistan still has a surplus for export as wheat stocks soared this year after a bumper crop of 23.86 million tonnes in 2009/10, with a carryover of 4.2 million tonnes from the previous crop.

"We have written to the federal government to allow us to export surplus wheat and their reply is still awaited. We have extra stocks and then we will also have the next crop ready in a few months," said Punjab's food minister, Chaudhry Abdul Ghafoor.

Ghafoor did not have details but an official in his ministry said the Punjab government had six million tonnes of wheat in stocks, including 2.5 million tonnes in reserves that it sought to export.

A senior finance ministry official in the federal government said last month any decision on wheat exports would be made after the sowing of the next crop, which has already begun in Punjab. It is the country's agriculture heartland and major wheat grower. The planting season runs through December.