Pakistan has approved the export of 600,000 tons of wheat from its surplus stock as the Asia’s third-largest producer expects to harvest bumper crop this year.
The Economic Coordination Committee of the Federal Cabinet, the highest economic decision-making body, in a Jan. 12 meeting, also decided to provide subsidy to the exporters to make them competitive in the international market.
Pakistan, where wheat is the staple food, produced 25 million tons of wheat from the previous crop and is now expecting 26 million tons this harvesting season which will begin around April-May. The annual consumption in the South Asian country is around 22 to 23 million tons of Wheat.
The meeting allowed 200,000 million tons from the central Punjab province and 400,00o tons from the Southern Sindh province. The subsidy will be provided under a scheme that will continue March 15, starting from the immediate effect.
Pakistan in November, 2014 imposed a 20 percent import duty on wheat to help protect local farmers from import, amid the continuing increase in wheat production in the country of 190 million people.
Agriculture makes up around 21 percent of the gross domestic product of Pakistan, South Asia’s second-largest economy.
The Committee also decided to extend cash support to only those exporters of sugar which purchase the sweetener at minimum price of 180 rupees per kg from the farmers.