Pakistan on the verge of a wheat crisis
the President of the Forum of the Pakistan Economy Watch (PEW) Murtaza Mughal said that soon the country could suffer severe wheat crisis.
the State stocks of wheat growing, and now has reached the level of 8 million tons. The government cannot cut, as grain exports is quite unsatisfactory, and even the repeated increase in export subsidies has not improved the situation.
the Federal government together with the regional authorities provide subsidies to exporters for the export of 1 million tons of wheat in the amount of 120 $/ton. However, the cost of wheat on world markets is almost twice lower than the cost of Pakistani grain. As a result, local grain traders managed to implement only 250 thousand tons. Afghanistan. However, after lower prices for Kazakh flour for Pakistani wheat closed even the Afghan market.
Exporters are asking the government to increase the subsidy by 60 $/t, to be able to export 1 million tons of wheat in African and some Arab countries.
four months later, will begin the new harvest. During the next campaign for the purchase of public funds wheat farmers, the grain stocks could increase by 50-60%.
Active export of Pakistani and Iranian wheat can significantly reduce prices on the world market of wheat.