ISLAMABAD, Oct 14: Pakistan is expecting to export around one million tons of wheat during the current fiscal, but the commodity procured by Passco would be restricted for local consumption only.

Commerce Minister Abdul Razak Dawood told a news conference on Monday that “there would be no more export (of wheat) from Passco. This is for local consumption only.”

He said that around 500,000 tons wheat would be exported by December 31. Of this, commitments had already been secured for export of 150,000 tons.

The governments of Punjab and Sindh would be flouting tenders for the export of 100,000 tons and 50,000 tons, respectively, within next few days, he said. The Trading Corporation of Pakistan would offer its first tender for wheat export in November this year, he added.

He said the Ministry of Commerce, TCP and other stakeholders would meet again in January 2003, to review further exports as estimates put wheat surplus of another 500,000 tons by that time.

The minister said that Pakistani wheat had been established in the world market and the government now wanted to have a better price as every tender was bringing in improved prices of the commodity. So far, 1.5 million tons of wheat has been exported since July 2001, this year.

He said that Pakistan would soon introduce grading system for wheat exports once silos and improved wheat processing mechanism were put in place by the private sector that would ultimately secure better price in the international market.

To a question he denied that three wheat consignments of around 140,000 tons were rejected by Iraq recently. He explained that first consignment was accepted by Iraq, the second one was initially rejected and then replaced consignment was accepted. The third consignment was rejected but on Pakistan’s protest it was accepted with $2 per ton discounted rates.

The commerce minister, who recently returned from Thailand, said that five rice exporting countries — China, India, Pakistan, Thailand and Vietnam — have formed a Council of Rice Trade Cooperation (CRTC) to secure better rice prices in the international market.

Collectively exporting around 75 per cent of world rice market, the five nations also signed last week a memorandum to enhance rice trade cooperation. The secretariat of the council would be based in Bangkok that would schedule two — secretariat level and ministerial level — meetings of the council within three months.

The ministerial level meeting would be held in Vietnam, dates of which would be decided by the CRTC secretariat that would meet within three months time. At the secretariat level, Pakistan would be represented by chairman and chief executive of newly-established Pakistan Rice Board.

He said that the rice council would collect information data on rice cultivation and export situation, and would make efforts to stabilise the rice prices so as to provide fair return to the farmers.

The minister said that it was agreed that farmers had generally increased their productivity and production but they were not getting full return on their efforts.

Mr Razak said that after achieving a record export of 2.4 million tons amounting to $525 million in 2000-01, Pakistan’s rice export dropped to 1.8 million tons ($441 million) in 2001-02 mainly because of shortage of water.