HAMBURG: Pakistani exporters have sold about 70,000 tonnes of wheat in past weeks as the country's new export programme starts, European traders said on Tuesday.
The government said in January it would permit 1.2 million tonnes of subsidised wheat exports to help clear large inventories.
Initial sales of Pakistani wheat have mainly been made to neighbouring Afghanistan, traders said.
Some sales have also been made to Malaysia and Sri Lanka, they said. Sri Lanka imposes low import duties on Pakistani wheat, traders said.
"There has been a slow start to the export programme as Pakistan's prices were not attractive internationally," one trader said. "But more sales are expected in the coming weeks as the programme gathers speed."
"The absence of Russia from the export market is likely to help Pakistani sales."
Pakistani importers made a series of large wheat purchases in 2014 following a disappointing local harvest that had pushed up the prices of domestically sourced wheat. But some import deals were later cancelled as local inventories were better than expected.
Inventories now need to be cleared before the new crop is harvested this spring.
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