21 January 2004	Wednesday	28 Ziqa'ad 1424

ISLAMABAD, Jan 20: The ministry of food, agriculture and livestock (Minfal) is likely to recommend to the government to regulate the export of wheat.

An official told Dawn on Tuesday that the recommendation was made following the observation that the private sector was engaged in export of wheat at a rate of Rs10,000 to 11,000 per ton to neighbouring countries, while the government was importing the commodity at Rs14,000 per ton from the international market.

This has created greater demand for Pakistani wheat in the neighbouring countries because it was cheaper than the international market. Currently, the official said wheat was available at the rate of Rs10,000 per ton in the local markets.

With these exports, the official said, wheat shortage had been created in three provinces. Passco and the Punjab food department was struggling to meet the demand, and Passco was importing 150,000 tons of wheat which would cost $224 million to the government.

The official said that this was a bad economics to import at the rate of Rs14,000, while the private sector was exporting it on cheaper prices. According to the official, if regulatory system was put in place, it would be for two to three months till the new crop arrival. However, he says the regulatory system depends on the ECC approval.