December 30, 2010

Pakistan expects increase in wheat exports after abolishing ban 

Pakistan, Asia's third-largest wheat producer, is expected to resume exports in January after the government abolished a three-year ban earlier this month, traders said.

Traders in the country's commercial hub of Karachi said queries have been made by Bangladesh, Sri Lanka, Indonesia, Malaysia and some Middle Eastern countries, and confirmed orders are expected by the end of the month.

There is an aggressive activity in the market after the formal notification by the government to lift the ban, and people have started buying wheat for export, said Johar Ali Qandhari, chairman of the Korangi Association of Trade and Industry.

"We expect shipments to begin in January as there is a lot of interest in Pakistani wheat. Queries are coming in from various countries including Bangladesh, Egypt, Jordan, United Arab Emirates and Singapore," he said.

Two finance ministry officials said that one million tonnes of wheat are allowed to be shipped by the private sector.

However, traders expect exports to exceed that level, citing a formal notification issued last week, which they said did not mention any cap.

"There is no limit mentioned in the notification so we are hoping that export will be more than one million tonnes," said an analyst. The government banned wheat exports in 2007 because of domestic shortages and high prices.

Pakistan in August deferred earlier plans 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 harvest.