ISLAMABAD, Jan 17: The government has decided to provide subsidy on export of wheat and wheat products to private sector for disposing of about 2 million surplus wheat stocks.

A senior official in the commerce ministry told Dawn that a suitable export subsidy on export of wheat and wheat products through sea ports was under way.

The Ministry of Food and Agriculture and Livestock (MINFAL) had already recommended to the government to export surplus wheat latest by April 30, 2002.

The MINFAL in its report said that since sizeable surplus was available and new wheat crop would start arriving in April 2002 disposal of surplus was utmost necessary.

The government has targeted to export 1.5 million tons wheat till April 4, 2002 by private sector, TCP and Pakistan Agriculture Storage and Supply Corporation (PASSCO).

To give final approval to the decision, a meeting was arranged by the commerce ministry here on Friday with the representatives of flour mills association.

The meeting was aimed at evolving policy parameters for exports of wheat and for ensuring wide publicity.

Moreover, during the meeting modalities would be devised for export of surplus wheat in the next months.

On June 14, 2001, the government deregulated the wheat export, and private sector was allowed to export wheat without any restriction, any quota, quantity, source and value.

The meeting would be attended by the commerce minister, privatization minister and minister for food and agriculture and livestock, leading wheat exporters, chairman, Pakistan Flour Mills Association and provincial chairman of flour mills associations.