Pakistan may export flour on surplus wheat: The News

Friday, February 20, 2009
SINGAPORE: Pakistan will likely produce more wheat from its bumper crop than a government target of 25 million tonnes this year, paving the way for more exports from South Asia which could further dent world prices.

“There is no fear of any shortfall. It should meet our requirement, we should have some surplus,” Muhammad Saeed, chairman of the Trading Corp of Pakistan, told Reuters.

“We are looking into exports. We will do value addition and send wheat flour to Afghanistan. Depending on the market conditions, we may export to the Middle East.”

Pakistan joins India in producing a record crop which may allow wheat exports from South Asia, adding pressure to the already depressed global wheat prices.

India, the world’s second-biggest wheat producer, is expected to export the grain for the first time in six years after a near record harvest of 77.8 million tonnes that is likely to boost stocks.

Wheat prices have dropped 62 per cent to $5.12-ž per bushel since peaking on the global benchmark Chicago Board of Trade in February 2008, pressured by rising global supplies amid an economic slump.

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