ISLAMABAD: Pakistan has been targeting potential markets to sell its surplus stocks of wheat but Jordan’s government has refused to purchase wheat from Pakistan over substandard quality issues.
According to the federal secretariat’s officer, earlier this year the Jordanian government had expressed its willingness to purchase 500,000 tons wheat from Pakistan and the demand was put forward to the provincial governments.
Communications have since been continuing between the provincial authorities and the Jordanian government – including rounds of negotiations to ship the Pakistani wheat to Jordan.
The officer said that the two sides had also agreed on the rates but the wheat’s quality remained a hurdle. Pakistani wheat is of higher standards than that of other countries but because the commodity remained unattended, in open spaces and stores, it became defected.
He said that despite the refusal, Jordan was still interested in purchasing wheat from Punjab but on the conditions of improved standard and quality. “Stiff competition, due to surplus wheat available in the international market has narrowed options for our (Pakistan) grain and this is the reason why different countries either reject the high price or make different demands,” the officer said.
Punjab’s Director of Food – Asif Bilal Lodhi – when contacted for comments said that the negotiations with Jordan are under way for a future agreement. He mentioned that the Jordanian authorities have objections over the quality and rates of the Pakistani wheat.
“They want wheat without dust and other ingredients. We purchase wheat from farmers in such a condition that it is not possible for the government to ensure segregated grains – even for export,” said Lodhi.
The federal government had suggested the Arab countries to purchase wheat in return of oil, in an attempt to get rid of the surplus wheat, but the proposal went unheard.
Pakistan currently has 9 million tons of wheat and the Economic Coordination Committee (ECC) has allowed the provinces to export subsidised wheat – 400,000 metric tons from Punjab and 200,000 metric tons from Sindh.
The wheat’s price in the international market is cheaper than that available in Pakistan due to which the government has taken steps to counter the situation. Recently, on the request of the National Food Security and Research Ministry, the ECC increased the regulatory duty on import of wheat from 40% to 60%. The federal secretariat officer further said that the remaining option is to ship wheat and flour to Afghanistan.
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