ECC sets Russian wheat import price at $390 per tonne

ISLAMABAD: Amid falling international wheat prices, the Cabinet’s Economic Coordination Committee (ECC) has decided to link the opening of the tender for the import of wheat from Russia to a fall in the price $390 per ton.

The ECC meeting chaired by Finance Minister Miftah Ismail on Friday decided that the Russian side could be offered the price of $390 per ton and the tender could be dropped if it does not accept the offer. It was observed during the meeting that there is a downward trend in the price of wheat which may decline further in the coming days.

Wheat production should be 26.173 million tons this year against a target of 28.89 million tons while the estimated consumption would be around 30.79 million tons.

On May 28, the ECC decided to import 2 million tonnes of wheat on a government-to-government (G2G) basis, while 1 million tonnes through an international tender process in within the framework of the existing arrangement to anticipate the shortage and the rise in prices.

Asks TCP to cancel the tender if Moscow refuses to accept the offer

In this regard, the Ministry of National Food Security and Research presented a summary on the supply of milling wheat from Russia on the basis of G2G.

In accordance with the ECC’s decision to import 3 million tons of wheat, the Trading Corporation of Pakistan has initiated the process of importing wheat from the Russian government.

In this context, a memorandum of understanding was signed between a Russian public company (SOE) and TCP on 8 June. Initially, the Russian government offered a wheat price of $410 per ton.

The Prime Minister’s Office has set up a committee under the Prime Minister’s Foreign Affairs Advisor Tariq Fatemi to negotiate with the Islamabad-based Russian Embassy on the issue of the price of imported wheat.

Meanwhile, the Russian delegation met with Trade Minister Naveed Qamar and offered a reduced wheat price at the rate of $405 per ton.

Later, the price was further reduced to $400 per ton.

The Ministry of Food Security, on the recommendation of the Ministry of Trade, submitted the price offered by M/s Prodintorg, a Russian government state enterprise at the rate of $399.50 per ton for a supply of 120,000 tons for the ECC exam.

Posted in Dawn, August 6, 2022

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