January 26, 2003	Sunday	Ziqa’ad 22,1423

KARACHI, Jan 25: The Trading Corporation of Pakistan (TCP) has earned around $113 million through export of 0.946 million tons of wheat during last eighteen months (June 2001 to Jan 2003), fetching average price of $119.44 per ton.

Presently a ship-load of 24,000 tons of wheat is about to leave the Karachi port on its way to Tanzania, which will take total export of wheat to 0.946 million tons.

The country, which made its debut about two years back in wheat exports at a dismal price of not more than $105.50 per ton, is now poised to dictate its terms as it has established its wheat price in the world market.

By introducing a benchmark pricing system, the TCP, in November 2002, managed to get higher price by $6 per ton at $124. The corporation in its Nov 6, 2002, tender fixed a benchmark price of $118 per ton but managed to get $124 per ton.

In the subsequent tender called on December 15, 2002, the state-owned corporation fixed higher benchmark at $130 per ton but managed to get further higher price at $133.38 per ton.

According to official sources, the corporation has already exported 27,000 tons of wheat out of 50,000 tons wheat tender called in November 2002. Similarly, out of another 50,000 tons tender, wheat shipment of 30,000 tons to East African countries is likely to take place by end of this month.

As the country has established its wheat in the world market, many wheat deficit nations have started showing interest in importing wheat from Pakistan. So far the country had been exporting wheat in bulk quantities but many countries do not have port facilities to handle bulk cargo.

As a result of this a private sector exporter has taken the initiative to export wheat in bags to suite the importing country. First such consignment of 1,000 tons is being exported to Myanmar (Burma) in containers.

Official sources have confirmed that arrangements are under way to export wheat bags as there is a growing demand for such consignments and the TCP is planning to oblige such enquiries. It could be easily said that the country on fetching a price above $130 per ton would be in a position to recover its procurement cost.

There are strong indications that demand for Pakistani wheat in the world market would sustain in the coming years as many wheat producing countries are presently faced with dry spells and may not be in a position to meet the entire global wheat demand.

The on-going wheat harvesting in the country is quite encouraging as two provinces — NWFP and Punjab —are likely to meet the production target with Sindh bogged down with sugarcane crop due to late crushing and also partly affected by water shortage is likely to produce wheat below the target.