KARACHI, Nov 14: Pakistan said on Friday it planned to buy about 500,000 tons of wheat through international tenders to stabilize rising domestic prices — its first wheat imports for nearly four years.
“We have proposed to the government to import 500,000 tons of wheat in four to five phases in the next two or three months,” Agriculture Minister Sardar Yar Muhammad Rind told Reuters.
“If the government approves our move, we will issue the first international tender within next two weeks.”
Mr Rind said the Economic Coordination Committee of the cabinet would review wheat availability for domestic needs and give approvals on imports at its next meeting.
The state-run grain body, the Pakistan Agriculture Storage and Supply Corporation, will issue the international import tenders, he said.
“The imports have been planned to check prices, which means the consignment will be exempted from various levies,” he said.
Pakistan’s wheat output was about 19.25 million tons during the last 2002-03 (Nov-April) crop year, short of the target of 19.70 million. Dry summer winds in May slashed yields and forced a halt in exports.
Mr Rind said the lower harvest would not affect supply in the domestic market as the country had carryover stocks of more than one million tons. Pakistan consumes a little over 20 million tons of wheat annually.
Mr Rind said imports would also help build up strategic wheat reserves to one million tons. Presently Pakistan has less then half a million tons in such reserves.
“We need extra supplies and we have planned our strategy,” he said.
Pakistan launched wheat exports in 2001 and found a big market in the Middle East and Africa. It also exported wheat to Europe and Southeast Asia. It exported 1.7 million tons of wheat in the last fiscal year.
Industry officials say the government move to import a considerable quantity of wheat was expected because it wants to ensure supplies during the sowing season and build stocks after smuggling into Afghanistan and Iran reduced local supplies.
Mr Rind said a sugarcane crisis would also hurt the wheat crop pattern next season, because at least 600,000 acres of land would not be available for sowing because of standing sugarcane crops.
“This is also a reason behind our (import) plan as we expect a delay in wheat sowing this year.”—Reuters
