Pakistan gets offers in tender to export 250,000 T wheat

HAMBURG: A tender to sell and export 100,000 tonnes of wheat from a state agency in Pakistan attracted purchase offers equating to around $250 a tonne FOB, European traders said on Wednesday.

The tender from the Punjab regional government is part of a new programme of state-backed exports in Pakistan.

The price level is relatively high which means the wheat may be exported without subsidies, traders said.

Pakistan's government in November approved the export of up to 500,000 tonnes of wheat, possibly with subsidies, to reduce large local supplies. The decision has added more supplies to global markets.

The Punjab tender closed on Feb. 18 and 12 trading companies submitted offers, traders said. Offers are still being considered and no sale has yet been reported,

"The wheat could be attractive to regional buyers in Asia, such as Bangladesh," one trader added.

Bangladesh on Tuesday bought 50,000 tonnes of wheat expected to come from Russia at $294.95 a tonne CIF liner out, a price including extra costs for ship unloading.

A previous tender to export 100,000 tonnes of wheat under Pakistan's programme from the Pakistan Agricultural Storage and Services Corporation (PASSCO) closed in January.

The Punjab tender offers wheat for export by sea only, which would exclude sales to neighbouring countries such as Afghanistan.

Other importers likely to be interested in the wheat include Sri Lanka, the Middle East Gulf and Asian countries.

Punjab is offering bagged wheat in fair to average quality.