January 04, 2008	Friday	Zilhaj 24, 1428

MULTAN, Jan 3: The Trading Corporation Pakistan (TCP) has issued tenders for import of 0.31 million tons of white wheat that is said to be more expensive than the red wheat that is also fit for human consumption.

The white wheat, priced approximately $83 per ton higher than the red wheat, would incur $25.73 million additional burden on the national exchequer.

Earlier, the government of Pakistan had decided to import one million tons of wheat to meet the shortage of wheat and wheat flour in country. Of the total wheat imported, only 0.15 million tons has arrived.

The TCP had decided to import 0.723 million tons of red wheat and 0.165 million ton of white wheat. A tender of 84,000 tons of white wheat was issued to the Australian Wheat Board (AWB) by the TCP.

The AWB had offered bid at $527 per ton on Nov 19. The tender was issued to the AWB at $511.75 after matching the price instead of awarding it to the parties offering lower rates while the TCP had imported red wheat at the price of $428 per ton with the difference of $83 per ton.

The AWB had refused to supply the required wheat due to increasing trend in prices of white wheat in the international market demanding the conditions in the import permit be withdrawn, but the government had taken stand that conditions cannot be withdrawn.

Eventually the AWB had refused to supply the required wheat demanding the return of performance bond and other guarantees and the TPC has returned the performance bond and other guarantees to the AWB after violating rules and regulations.

After the last week decision of the ECC to import an additional 0.5 million tons of wheat to curb rising food inflation, the TCP has decided to import 0.31 million tons of white wheat and 0.3 million tons of red wheat.

In its tender notice, the TCP has mentioned that white wheat could be imported from America, Canada and Australia.

Khawja Mohammad Shoaib of the Farmers Vision Forum said that at this time Pakistan does not need to import white wheat because suppliers would be able to supply the required wheat after mid-April when the harvesting season of wheat in Sindh starts from March 15.He said that the government had decided to purchase six million tons of wheat within the country through its institutions so this money should be spent for this purpose.

He said there was no logic to mix a small quantity of white wheat in Pakistani wheat that is also red wheat while India is importing only red wheat for its domestic consumption and in the past when Pakistani government had allowed private importers, they had also imported red wheat.

He said when government is releasing both types of wheat at the same prescribed issue price after subsidising it, the import of white wheat would unnecessarily put an extra financial burden on the national exchequer, so the government should consider import of only red wheat.

Abdul Malik, TCP chairman, was not available for comments.