LAHORE, Feb 2: The government plan to export 500,000 tons of wheat has hit snags as its price in the international market slides down to $220 per tons, rendering wheat from Pakistan uncompetitive.

According to sources in the ministry of food and agriculture, procedural delays have wasted crucial 35 days, and during this period, prices in the world market dropped to $220 per ton as against $280 on Dec 28 when the decision to export wheat was taken.

Harvesting in some of the world's biggest wheat producers is also lurking around (Pakistan included) which means that prices would continue to fall in the next few weeks or months, further compromising chances of any wheat export.

The Punjab, biggest producer and holder of the commodity, still has around 1.8 million tons of stocks. With only two months left in the next harvesting, it might be carrying stocks to the next season. So far, Punjab has received bids for 125,000 tons as against the total offer of 400,000 tons.

Sindh was also told to export 50,000 tons which it has. It is the Punjab, which may play a spoiler in the whole process.

An official of the Punjab government said the failure to export might not hit the province as much as being projected.

The province has stocks of around 1.8 million tons, but it also has 40 days for the next harvesting season. These 40 days would easily consume around 1.2 million tons.

Of the rest of 600,000 tons, 125,000 tons would be going for export and almost the same quantity to Balochistan which already has placed the demand. So the department would be starting the next season with only 350,000 tons, which is not bad by any stretch of imagination, he insisted.

It could have been better if export orders would have touched 400,000 tons, but there is nothing to worry about. He agreed that the price factor had been hindering export.

The Punjab and Sindh had offered "sale for export" to local parties, and they were asked to quote price in local currency. Only two parties offered a price of more than Rs430 per 40 kg (Rs11,700 per ton).

There is no sense in releasing wheat to local parties at reduced rates for export, which may rig the domestic market in favour of those who try to buy "wheat for export."

But sources in the ministry said it was the Punjab which had been pressing for export in view of its huge stocks, which piled up during the last two years.