Thanks to the government’s botched export policy, Pakistan’s chances to export 0.5 million tons of wheat, worth billions of Rupees in the international market, have diminished.
Sources say it is because of the tug of war between Pakistan Agricultural Storage and Services Corporation (PASSCO) and Punjab’s Food Department.
According to details, PASSCO used its influence in the federal government to get permission to export 100,000 tons of wheat and started to accept tenders from the exporters for Rs. 32,759 per ton.
In the meantime, the department, after government’s approval, also announced to export another 500,000 tons of wheat at the same price, without even bothering to check the downward trend in the international grain market.
Meanwhile, the grain prices in the global market slumped down from $260/ton to $235/ton – forcing local exporters to withdraw their tenders.
On the other hand, during the bidding process on Monday, PASSCO offered ridiculously low prices, making the finalization of the deal nearly impossible.
Most of the bids were around $200/ton or Rs. 28,000 – much less than the benchmark rate and prevalent trend in the international market. Sources say that the Punjab Food Department was unlikely to finalize the deal.
Moreover, the release of wheat to flour mills has already surpassed the previous record. In the given circumstances, the Food Department might continue to release of grains to local private parties for domestic consumption.