Wheat exporters expect less profit after Russian wheat's entry

ISLAMABAD: The return of Russian wheat to export markets has put downward pressure on the prices of wheat in the international market and Pakistani exporters are reluctant to export wheat.

"Russia may export around 8 million tones in July-September to different parts of the world due to which a stiff competition in international markets may arise", Chief Executive Officer Harvest Tradings Ahmad Jawad said in a statement issued here on Thursday.

He said that Pakistani products were finding it hard to compete with lower priced wheat due to fierce competition by Russia. "Our most of its wheat sold went to East Africa, Middle East and Bangladesh".

"Pakistan is a 3rd largest producer of wheat in Asia. After lifting the ban on wheat export in December last year Pakistan has already exported wheat during the current year", Jawad Ahmad added.

The CEO Harvest Tradings said that the country had already exported around 1.75 million tones of wheat so far and it would export another two million tons of wheat this year out of the country's total production of 24.2 million tons for the current year.

He further said the expected stock of 4-5 million tones of wheat after the fresh crop will not benefit the country in terms of exports despite removal of ban as the international trade of Pakistani wheat has come to a complete halt.

"Pakistan doesn't have the infrastructure for its excess stocks, so domestic prices will likely by driven downward as Pakistan dumps its un exported wheat on the home market", Jawad added.

Similarly, he said, Pakistan's 2010/11 season wheat crop output was likely to cross 24 million tones while there were around 3 million tones of carryover from the previous crop making the total surplus stock to around 5 million tones as the country's domestic consumption stands at around 22 million tones.

Copyright APP (Associated Press of Pakistan), 2011