July 21, 2006

 

Pakistan decides not to export surplus wheat

 

 

The Pakistan government has decided not to export surplus wheat in order to keep prices of the commodity stable in the domestic market, a senior government official said Thursday (Jul 20).

 

Ismail Qureshi, secretary of the Ministry of Food and Agriculture, said that the government wants to ensure stable prices for the benefit of domestic consumers.

 

"If it (the price) increases as a result of exports, then we are not interested in exports," he said.

 

A proposal to export surplus wheat came under government consideration after a better-than-expected harvest this season.

 

Government officials have estimated the 2006/07 crop at 21.7 million tonnes, slightly higher than the 21.6 million tonnes produced last year.

 

Pakistan's wheat crop is sown from November to January and harvested in April and May.

 

According to government estimates, the country so far has a wheat surplus of over 1.5 million tonnes after taking into account domestic demand of around 22 million tonnes and carry-over stocks of 2 million tonnes from last year's crop.

 

Another official at the Food and Agriculture Ministry said the government has decided to keep the surplus wheat in its strategic reserves. "The ministry has decided to maintain reserves of around 2 million tonnes this year," the official said.

 

The official said the government has rejected a ministry proposal to lift a two-year old ban on wheat exports because of fears that it could have a negative impact on domestic prices.

 

Africa and Middle East were formerly markets for Pakistan-origin wheat.