Punjab government to sell wheat to exporters

The Punjab Food Department has decided to sell wheat to local exporters on 30 to 45 days'' letter of credit for facilitating them in exporting the commodity present with the department and is in excess of domestic requirement. Punjab Food Secretary Irfan Elahi, talking to Business Recorder here on Saturday, said that the government has also decided to bear the transportation charges, up to Rs 600 per ton, for those exporters who would export more than 100,000 tons wheat.
He expressed hope that this decision of the provincial government would help in disposing of surplus wheat at better rates, while the exporters would get relief in transportation charges. Regarding response from exporters, Irfan said that they are at present negotiating terms of the agreement between exporters and the government and hoped to get a breakthrough by Monday, January 3, 2010, in this regard. He said that a lot of parties had contacted the government and showed interest but at present three parties are negotiating with the department. These three parties collectively may export 500,000 tons of wheat, while the department can allocate up to two million tons of wheat for export, he added.
The Punjab Food Department, after permission of the government for export of wheat, has set up a special cell to facilitate the exporters. This information cell has been established in the directorate of food, Lahore, providing all information to the intending exporters about availability of wheat stocks, its prices, and procedure to obtain it from the provincial food department. This cell is aimed at to mobilise the private sector for wheat export.