June 2, 2006

 

Pakistan may allow wheat exports on better crop size

 

 

The Pakistani government is likely to allow wheat exports sometime this month following better-than-expected harvest this season, a senior government official said Thursday (Jun 1).

 

Citing the latest estimates, Dr Qadir Bux Baloch, Agriculture Development Commissioner at the Ministry of Food and Agriculture, said that wheat crop size for 2006/07 will be 21.7 million tonnes.

 

The latest estimate is above earlier forecast of 20.5 million tonnes, he added. The government had earlier cut wheat output estimate because of unfavourable weather conditions for the wheat crop in the key wheat-growing Punjab province.

 

Last year, the country produced 21.6 million tonnes of wheat. Pakistan's wheat crop is sown from November to January and harvested in April and May.

 

"After encouraging crop this year, the government is thinking to allow exports (of wheat)," he said. "But its too early say when it will be allowed. A decision on this will be taken sometime this month," he added.

 

Baloch said the country would have surplus wheat of over 1.5 million tonnes after taking into account domestic demand of around 22 million tonnes and carryover stocks of 2 million tonnes from last year's crop.

 

Government officials have said that if wheat exports are allowed then India could be a market for the Pakistan-origin wheat.

 

India and Pakistan are already in talks to enter into a barter trade agreement with Pakistan for commodities such as sugar and wheat, but these talks have yet to yield any result.

 

India has embarked on one of its largest ever wheat import programmes for a single year, and so far in 2006, has sought 3.5 million tonnes from the international market.

 

It is also the first time in more than six years that India is importing wheat.