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A state agency in Pakistan is tendering to sell and export 100,000 tonnes of wheat under a new government programme agreed in November, European traders said on Thursday. The tender from the Pakistan Agricultural Storage and Services Corporation (PASSCO) closes on Jan. 11, traders said. Pakistan's government on Nov. 20 approved the export of up to 500,000 tonnes of subsidised wheat to reduce large local supplies.

Pakistan's export programme is being watched closely by grain traders as large additional volumes of wheat can be rapidly placed on world markets. "I anticipate that Sri Lanka, the United Arab Emirates, Oman and Indonesia will be among potential markets for the import of Pakistani wheat," one trader commented.

In early 2018, Pakistan also approved the export of wheat to reduce large local supplies which resulted in a series of large sales by export companies to Asian and Middle Eastern importers. The PASSCO tender offers wheat in bags described as "fair to average" quality, traders said. Buyers of the wheat must remove the volume bought within 30 days of an agreement being signed, they said. The wheat is for export by sea ports only.

Copyright Reuters, 2019


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