Wheat surplus

The ECC’s decision to allow the export of 1.2 million tons of wheat in view of a bumper harvest this year is a timely step. At present, the country has an excess supply of wheat which has opened the door for exports. The country’s wheat harvest this year is estimated to be around 26 million tons while domestic consumption is almost equal to production. Out of 1.2 million tons, Punjab has been allowed to export 0.8 million tons while a 0.4 million tons export quota has been allocated to Sindh.
The government has allowed the export of surplus wheat ahead of the new crop, which will start entering the market from March 2015. The export of wheat will not only earn the much-needed foreign exchange for the country, but will also help stabilise its prices in the market, especially for the growers for whom it is a cash crop.
Khan Faraz
Peshawar