KARACHI, Dec 13: The country has made fabulous achievements in the field of wheat exports, and in a short period of two years it has not only captured a sizable global market but has also started to fetch higher price for the produce.

After achieving autarky in wheat production in 2000, the country has also made a strong foothold on wheat map of the world where developed countries like US, Canada and Australia used to dominate.

The most remarkable development took place during last three months when the state-owned Trading Corporation of Pakistan rapidly increased the benchmark price for wheat by $17 to $130 per ton, official sources said.

During the first three months of current fiscal wheat exports stood at around 0.364 million tons with a projection of exporting another 0.350 million by the end of second quarter (2002-03).

There are strong indications that wheat prices in world market would go higher as major wheat producing countries such as US, Canada and Australia are like to have low output because of draught and dry weather. Nevertheless, India and Russia are expected to have good wheat crop.

Pakistan, which made its debut about two years back in wheat exports at a dismal price of not more than $105 per ton, is now poised to dictate its terms due to looming wheat shortage the world over.

The situation took a sharp turn when the TCP in its August 12, 2002 tender for wheat (Pakpunjab) export of 100,000 tons managed to get a better price at $108.17 per ton.

On the subsequent tender of November 6, 2002, the corporation instead of leaving the tender price open had fixed a benchmark price at $118 per ton.

The corporation surprisingly received the offer of $124.15 per ton. The wheat volume in the tender was 50,000 tons.

Taking stock of the situation, the TCP in its next tender for which opening date was initially fixed December 11, and had to be extended due to Eid-ul-Fitr holidays to December 16, 2002, fixed the benchmark price at $130 per ton, a jump of $17 per ton in wheat prices during a short period of three months. The quantity of wheat for the tender is 50,000 tons.

According to TCP sources, shipment of wheat awarded against November tender would start in a day or two as the ship, loaded with 25,000 tons, is being given berth. The balance 25,000 tons is likely to be shipped on Dec 25-26. Most the TCP wheat export offers are on fob basis.

After the TCP’s August tender, the Punjab government floated a local tender of 100,000 tons for export of wheat. As per tender conditions exporters were asked to lift the wheat from the government gowdowns. And after submitting Rs8,000 per ton exporters quoting the minimum incidental cost would be awarded the contract.

In a most unexpected development, the Punjab government received as high as $127 per ton, fetching higher wheat price for the country.

If Pakistan continues to fetch above $130 per ton the procurement cost could be recovered. In the past the government had to indirectly subside the cost. It seems that TCP’s efforts in capturing international markets have started bearing fruits because break even prices could also be helpful in earning foreign exchange. Above all this will benefit the growers who will be getting better price for their produce.