MULTAN, Sept 18: Instead of making arrangements for shipment of 50,000 tons of wheat under the US food aid programme, the officials are allegedly interested in making a deal with the Canadian Wheat Board to buy 700,000 tons of wheat on a price more than $100 per ton compared to international market rates.

Ministry of food, agriculture and livestock additional secretary Raja Shahid Hussain revealed that the US has agreed to provide 50,000 tons of wheat under a food-aid programme and the shipment is likely in October or November.

Despite Shahid Hussain’s claim that the agreement for 50,000 tons of wheat from the US under the PL-480 scheme has been finalised and the agreement is expected to be signed over the next three days, the ministries concerned do not seem to be interested in the free import deal.

They have allegedly turned their attention towards a deal with the Canadian Wheat Board that has offered to provide 700,000 tons of wheat on deferred payments at a higher price, sources said.

The sources said that the Canadian Wheat Board that had provided wheat to the country at more than $200 per ton higher price in the past, has once again offered for the sale of 700,000 tons of wheat with the charm of deferred payments of 360 days at $474.75 per ton on Sept 12 while the lowest purchase rate of TCP is $361 per ton in the running month.

They said that the country has 3.5 million tons wheat in the stores of Passco and the Punjab food department while the Trading Corporation Pakistan has placed import orders of 1.7 million tons.

They said that Pakistani officials had old track record of purchasing Canadian wheat at record high prices and when the country was facing severe economic problems, this deal would put an unnecessary burden on the national kitty.

Sources said that there was also a need to probe how many import orders were placed by the Trading Corporation Pakistan and what was the number of orders that were delivered in time.

They revealed that when there was a downward trend in prices in the international market, instead of forfeiting the performance bonds and other guarantees of the suppliers after their failure to deliver the commodity, the TCP has extended the delivery dates. This has not only worsened the wheat availability situation in the country but has provided an opportunity to the suppliers to earn much profit because now the prices were down at $360 against $410 in June.

Trading Corporation Pakistan spokesman Ahmed Bakhsh Brohi said the corporation did not give extension to any party and Aug 31 was the shipment date for all the orders placed in June. Qadir Bakhsh Baloch said that a government delegation would visit US on Sept 29 to sign the agreement.

He confirmed that discussions were under way with the Canadian Wheat Board and wheat would be purchased only after negotiations on the price.