November 15, 2006	Wednesday	Shawwal 22, 1427

KARACHI, Nov 14: Exporters of wheat products are under stress. Problems they are confronted with include: availability of quality wheat on sustained basis and stability of price in the market.

According to exporters there is scope to enhance wheat products trade provided the government assures quality and timely availability of wheat for value-addition.

“There is demand of Pakistani wheat products such as wheat flour grade one (Maida), plain flour (atta), Samolina (Sujee) wheat brand (chokker) and vermicelli (Pasta) in the world for being tasty and of good quality,” a leading exporter of wheat products told Dawn.

Exporters complained that Sindh Food Department is supplying wheat infected with weevil disease which results in poor quality products. It is also alleged that the department is not ensuring prompt deliveries to exporters of wheat products despite the fact that around 0.7 million tons of the commodity are lying in its godowns.

Presently the department is holding around 0.7 million tons out of which 40 per cent is from old crop, which is in bad shape, and 60pc from last year’s carry-over stocks.

The department is supplying wheat from its inventory to millers and exporters at Rs1,125 per 100-kg but its poor quality and late delivery are creating problems, the exporters said.

Karachi wheat traders prefer to buy the commodity from Punjab Food Department at Rs1,125 per 100-kg owing to prompt delivery and better quality despite the fact that they have to pay Rs60-65 per ton towards freight.

These two factors are importance for export contracts, Syed Johar Ali Qandhari, a leading exporter of wheat products, told Dawn.

“If the government assures provision of quality wheat at competitive price, the value-added wheat products can be exported in bigger volumes as there is great demand for Pakistani products in the world market,” he added.

After having bumper wheat crop in 2002-03, he said the country did not only export large quantities of wheat but its products and earned foreign exchange. “However, in the absence of sustained supply and unstable wheat price export trade of value-added products suffer”.

He further said that Gulf countries did not cultivate wheat but they were in wheat trade in a big way as they imported raw wheat and after value addition re-exported it at a good margin.

Pakistan being major wheat producing country has not been able to fetch a major share in the world market due to inconsistent government policy towards wheat export.

Export market could well be maintained even if we import wheat and after value-addition re-export it and get higher price and foreign exchange, asserted another exporter.

Due to inconsistent wheat policy of the government sometimes wheat export contracts have to be cancelled. “Sometimes the government suddenly stops its export and in case of short crop the exporters of value-added wheat products could not get wheat at competitive price,” he said.

It would be better if the free import of wheat for value-addition is allowed, he added.

Exporters are unanimous in their demand that the Sindh Food Department has outlived its utility and time has come to take a bold step about its role if the government is serious about enhancing export of wheat products.