Another 200,000 tonnes of wheat has been sold for export in the past week, continuing large sales after the country started an export incentive programme at the beginning of this year, European traders said on Friday. This brought foreign sales of Pakistani wheat since the export subsidy scheme started in January to about 700,000 tonnes, traders estimate.
Some of the sales have been made in advance of the next allocation of wheat to the state subsidy scheme, traders said. Destinations of the 700,000 tonnes include Bangladesh, Sri Lanka, East Africa, Vietnam, Malaysia, the United Arab Emirates and Afghanistan. Shipment is between February and the end of April.
Pakistan has not been a major wheat exporter in recent years, with its main sales going to Afghanistan. But a bumper wheat crop last year and large stocks led the government to introduce the subsidy scheme in January, sparking a series of large export sales in past weeks. A cabinet committee in December approved a programme to export 2 million tonnes of wheat in the current financial year, with 1.5 million tonnes coming from the state of Punjab and 500,000 tonnes from the state of Sindh, Pakistan's Information Ministry said.
"The 500,000 tonne allocation from Sindh province has now been sold out and a further 200,000 tonnes has been sold in advance from the Punjab allocation," one European trader said. "The approval for the Punjab allocation is still expected by the end of February."
The largest importers are said to be Bangladesh with over 170,000 tonnes bought and Sri Lanka with some 120,000 tonnes, traders estimate. The sales are both by bulk carriers and shipping containers. Sales offers of Pakistani wheat with 12.5 percent protein in bulk carriers were made at around $201 to $203 FOB this week. "More sales are expected as demand is brisk," a trader said. "The quality of the wheat offered for sale is good."
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