ISLAMABAD: After recording bumper wheat production of above 24 million tonnes, the Economic Coordination Committee of the Cabinet is likely to allow the export of wheat and its products, sources told Daily Times on Wednesday.

In this regard a summary has already been forwarded by the Ministry of Food and Agriculture (MINFA) seeking removal of the ban on export of wheat products. The ECC of the Cabinet is likely to meet on the 19th. However, the sources claimed that the government might allow the export of wheat in limited quantity. The government would allow the export of flour (atta) to Afghanistan of about 0.6 million tonnes only this year as a routine. At present the government has imposed the 35 percent central excise duty on export of wheat and its products.

If the export of wheat or its products is allowed, then the government would be able to export the commodity after a period of nearly 2 years, sources claimed.

Pakistan, the third-largest producer of wheat in Asia, will raise its wheat output estimate by nearly 1 million tonnes to around 24.0 to 24.5 million tonnes on better-than-expected yields and a higher area under cultivation. “Our first assessment was in April, when a very limited area was being harvested, but now harvesting has started in almost the entire country and higher production is expected than the initial estimate of 23.3 million tonnes,” a senior official of the ministry told Daily Times.

Last year, Pakistan produced 21.8 million tonnes of wheat after the area under the crop fell 2.6 percent against a target area of 8.49 million hectares, and the government had to import wheat to cover the shortfall.

Farmers in Pakistan have also been encouraged to grow more wheat as the government has increased its support price to Rs 950 per 40 kg from Rs 625 per 40 kg at the time of sowing.

About ongoing wheat procurement process, officials in the MINFA said the government so for procured about 7.461 million tonnes of the commodity till May 12, 2009. Initially, the government fixed wheat procurement target of 6.5 million tonnes. But the target has been surpassed and still a large number of wheat was available for procurement, the officials maintained.

The government of Punjab has so far procured 4.689 million tonnes out of total initial target of 3.5 million tonnes. The harvesting and procurement of wheat in Punjab was in full swing. The official informed that the Punjab government has unofficially increased its wheat procurement target from 3.5 million tonnes to 6 million tonnes. Similarly, Sindh also increased procurement target from existing 1.2 million tonnes to 1.5 million tonnes and the PASSCO also increased its procurement target from existing 1.5 million tonnes to 2 million tonnes.

The official claimed that if the unofficial procurement target is achieved, then the government would be able to procure a total of 9.8 million tonnes.

The Sindh province procured 1.136 million tonnes till May 12, as compared with 0.452 million tonnes during the same period last year. However, the Sindh government continued to impose ban on movement of wheat in the province.

The officials of the ministry claimed that due to ban on wheat movement in Sindh the growers of that province were deprived of the announced procurement price of Rs 950 per 40 kg. If the province could not impose ban on wheat movement the growers would be able to get at least Rs 850 to Rs 900 per 40 kg.

The PASSCO procured 1.628 million tonnes till 12th out of its initial total target of 1.5 million tonnes. The official figures showed that PASSCO has achieved 108.57 percent of the procurement target. Last year till the same date, the organisation procured only 0.674 million tonnes. The NWFP so far procured only 6,921 tonnes as against it total procurement target of 300,000 tonnes.