WASHINGTON: International wheat prices are down to $70 per tonne as Australia the second largest producer and exporter floods the market.
With each passing day, unused wheat stocks negatively impact the national and provincial kitty. To add to the scenario, the next crop is due in only four (Sindh starts early) months, which could lead to an increase in stocks of about 50 to 60pc.
Pakistan is currently holding around 8m tonnes of stocks: Punjab with 5.4m tonnes, Sindh 1.2m tonnes and Passco around 1.4m tonnes. These stocks cost around $350 per tonne – more than double the selling price in the world market.
The price differential has, naturally, put the country in an uncompetitive situation in the international market.
