August 14, 2007	Tuesday	Rajab 29, 1428

KARACHI, Aug 13: Exporters of wheat products are in a quandary following reports that the government is planning to impose 30 to 35 per cent regulatory duty on its export. This has suddenly upset their strategy and fears are running high of losing foreign markets developed by them with lots of efforts in the last so many years.

The value-added wheat products, like maida (fine flour), suji and wheat flour fetched around $180m in exports during the last five months (April to August) of this year, exporters said.

However, reports that the ministry of finance has proposed to the ministry of food, agriculture and livestock (Minfal) to put up a summery in the upcoming meeting of the ECC for imposing export duty on wheat products has upset exporters.

Exporters have strongly argued that since they are purchasing wheat from the open market and are not getting any subsidy from the government, therefore, there was no reason for imposing export duty on wheat products.

The government decision to impose ban on wheat exports, they said, was in the national interest as it was causing shortage of essential produce in the domestic market. However, wheat products which are exported in small quantities at much higher price due to value-addition is not causing any disturbance in prices.

Johar Ali Kandhari, managing committee member of the All-Pakistan Flour Mills Association (APFMA), told Dawn that exporters of wheat products are fetching 50 per cent more price over the domestic market and earning foreign exchange for the country.

He said exporters have developed markets for wheat products (non-traditional items) in countries, like Iran, Iraq, Somalia and Yemen, and there was a lot of demand. However, by imposing export duty, no buyer would like to pay extra money.

Wheat products are fetching around $300 to $350 per ton in the world market and Pakistani products are quite popular.

Out of total exports of 60,000 tons of wheat products, around 65 per cent constituted of maida (fine flour), 15 per cent Suji and 20 per cent wheat flour.

“It is going to damage our standing in the world market and if the government is keen to impose duty, it should give a cut-off time so that exporters could fulfil their foreign contracts which are in the pipeline,” he maintained.

All flour mills are operating at full capacity and have created economic activity by fulfilling domestic demand and export contracts of wheat products, he added.

Export of wheat products is being made by small and medium size exporters who mostly ship five to 10 containers and this does not have any adverse impact on the local market.