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Pakistan ditching Russian wheat to save $1.4 million

ISLAMABAD:

Pakistan on Friday rejected Russia’s offer to supply 120,000 metric tons of wheat in price of $399.50 with demand for further reduction of 2.4% in in rate due to fall global commodity prices.

decision was adopted by the Economic Coordinating Committee (ECC) of Cabinet after consultation with Prime Minister Shehbaz Sharif.
It was chaired over Minister of Finance Miftah Ismail.

Russia had made in final offer to ship wheat at $399.50 per metric ton under government-to-government to deal with.
been noticed in CEP meeting that declining trend in in price of wheat, which can additionally reduce in coming days, according to a statement released by the Treasury Department.

“EX decided that the Russian side may be offered price of $390 and the offer may be canceled if they (the Russians) do not accept the offer,” the message says. added.

Some members of CEP including minister of State for Petroleum Dr Musadiq Malik, were against in decision reject Russia’s offer because of relatively thin position of wheat stocks.

government proposed price of $390 for ton $9.5 or 2.4% less than final Russian proposal.

This would mean saving of $1.4 million for total suggested quantity of 120,000 metric tons. The Russian offer expired on Friday at 18:00 Moscow time.

Pakistan decides to import three million metric tons of wheat is year to cover its consumption and strategic reserves requirements.

government It has already 986,000 metric tons purchased of wheat through three different international competitive bidding.

Pakistan completed the purchase of 200,000 metric tons last week. of wheat import deal at $407.49 per metric ton.

Russian final the offer was $8 or 2% cheaper than last open tender. Usually, government-to-government deals expensive due to limited arrangements.

EIS reported that Prodintorg, a Russian state-owned company, offers rate of $399.50 for ton for food of 120,000 metric tons of milling wheat through government-to-government agreements.

trading corporation of Pakistan (TCP) initiated the process of Import of wheat from Russia government on a government-to-government the foundation.

Memorandum of understanding had also signed between a Russian legal entity and PTA in June of this year which included small details of supplies.

Initially government of Russia offered wheat price at $410 per metric ton, which subsequently fell by 2.6%.
prime minister formed a committee under the leadership of Tarik Fatemi, his special assistant without portfolio, for negotiations with The Russian Embassy on in price of wheat.

Sources said that some of CIS members strongly recommended funding minister don’t turn around down Russian proposal.
PML-N LED coalition government It has already I decided reduce strategic reserves of wheat requirements from two million tons to one million ton in meeting last month. Decreasing in reserve requirement, total requirement for wheat imports also was reduced up to 1.6 million tons.

The country had already signed deals for import of Near one million tons.
For food and national Pakistan Ministry of Security has about 7.7 million metric tons of enough wheat for 168 days of consumption.

decision to reduce strategic reserve of wheat requirements on half was made due to declining foreign exchange reserves and high global commodity prices.

EKC was informed on On Friday, the International Grants Council in London announced price of Black Sea wheat at the level of $354 per metric ton and prices were on downward trajectory after the deal between Russia and Ukraine.
However, the ESC was also reported that wheat prices rose on Friday for $4 on fears of supply disruptions as tensions rise between China and Taiwan in Taiwan Strait.

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Derrick Santistevan
Derrick Santistevan
Derrick is the Researcher at World Weekly News. He tries to find the latest things going around in our world and share it with our readers.

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