Pakistan snubs Russian wheat to save $1.4m – The Express Tribune

PTI says next big step within 48 hours
NAB acted as 'instrument' of persecution: CJ
Home
Latest
Pakistan
Business
Sci-Tech
Phones
World
Opinion
Life & Style
Sports
Blogs
Archive
Other
Islamabad demands reduction of 2.4% in price
Pakistan on Friday rejected Russia’s offer to supply 120,000 metric tons of wheat at a price of $399.50, demanding further reduction of 2.4% in the rate due to the falling global commodity prices.
The decision was taken by the Economic Coordination Committee (ECC) of the Cabinet after consulting with Prime Minister Shehbaz Sharif. It was presided over by Finance Minister Miftah Ismail.
Russia had made the final offer to supply the wheat at $399.50 per metric ton under the government-to-government deal. It was observed in the ECC meeting that there was a declining trend in the price of wheat which may further reduce in the coming days, according to a statement issued by the finance ministry.
"The ECC decided that the Russian side may be offered the price of $390 and the offer may be cancelled if they (Russians) do not accept the offer,” it added.
Some members of the ECC were against the decision to reject the Russian offer because of the relatively thin position of the wheat stocks.
The government’s proposed price of $390 per ton is $9.5 or 2.4% less than the final Russian offer.
This would have translated into a saving of $1.4 million at the total offered quantity of 120,000 metric tons. The validity period to accept the Russian offer was Friday 6pm, Moscow time.
Pakistan had decided to import three million metric tons of wheat this year to meet its consumption and strategic reserves requirements.
The government has already procured 986,000 metric tons of wheat through three different international competitive bidding deals.
Last week, Pakistan had finalised the 200,000 metric tons of wheat import deal at $407.49 per metric ton.
The Russian final offer was $8 or 2% cheaper than the last open tender. Usually, government-to-government deals are expensive due to restricted arrangements.
The ECC was informed that Prodintorg, a state-owned Russian company, was offering the rate of $399.50 per ton for the supply of 120,000 metric tons of milling wheat through the government-to-government arrangements.
The Trading Corporation of Pakistan (TCP) had initiated the process of importing wheat from the Russian government on a government-to-government basis.
A memorandum of understanding had also been signed between the Russian entity and the TCP in June this year, which included fine details of shipments.
Initially, the government of Russia had offered the wheat price at $410 per metric ton, which it subsequently lowered by 2.6%. The prime minister had formed a committee under Tariq Fatemi, his special asssistant without a portfolio, to negotiate with the Russian Embassy on the price of the wheat.
Sources said some of the ECC members strongly encouraged the finance minister not to turn down the Russian offer.
The PML-N led coalition government has already decided to reduce the wheat strategic reserves requirements from two million tons to one million ton in a meeting held last month. With the reduction in the reserves requirement, the overall wheat import requirement has also been reduced to 1.6 million metric tons.
The country had already signed deals for the import of nearly one million tons.
According to the food and national security ministry, Pakistan has around 7.7 million metric tons of wheat that is sufficient for 168 days' of consumption.
The decision to reduce the strategic wheat reserve requirements by half was made due to thinning foreign exchange reserves and high global commodity prices.
The ECC was informed on Friday that the International Grants Council, London, had reported the price of Black Sea wheat at the level of $354 per metric ton and the prices were on the downward trajectory after a deal between Russia and Ukraine.
However, the ECC was also informed that the wheat prices had increased on Friday by $4 on fears of supply disruptions due to increasing tensions between China and Taiwan in the Taiwan Strait.
COMMENTS

Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ

Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ
Imran Khan booked under terrorism charges
Updated Aug 22, 2022
Legendary singer Nayyara Noor passes away
Updated Aug 21, 2022
The celebrated crooner, whose fruitful career spanned over several decades, was 71
PTI wins NA-245 seat by huge margin
Updated Aug 21, 2022
PTI candidate Mehmood Maulvi defeats MQM-P’s Mueed Anwar by a wide margin while TLP comes in third
Planes avert clash at Karachi Airport
Updated Aug 21, 2022
Aviation authority takes notice of ATC's alleged negligence
PTI asks supporters to take to streets amid possibility of Imran’s arrest
Updated Aug 22, 2022
Fawad Chaudhry asks party workers to reach former PM’s Bani Gala residence
Legendary singer Nayyara Noor passes away
Updated Aug 21, 2022
Imran Khan booked under terrorism charges
Updated Aug 22, 2022
FIR says PTI chief threatened Islamabad IG, judge to spawn fear among police, judiciary
PEMRA imposes ban on live-telecast of Imran Khan's speeches
Updated Aug 21, 2022
Media watchdog permits recorded speeches to be aired after 'effective delay mechanism is put in place'
Planes avert clash at Karachi Airport
Updated Aug 21, 2022
Aviation authority takes notice of ATC's alleged negligence
Pakistan mulls taking upfront cost
Updated Aug 21, 2022
Under a proposal, upfront cost of CPEC projects will be acquired to boost reserves
Inflation woes : People troubled by rising food prices
Food security, war and bystanders
Sri Lanka anger boils over food, fuel crises
PM Shehbaz orders ensuring buffer wheat stock
ECC allows import of 500,000 metric tons of wheat
Cabinet split over wheat import plan
NA sittings: Bilawal most vocal followed by PM Shehbaz in 4th parliamentary year
India's southern state reports 'tomato flu' cases
Saudi Arabia set to outpace US in economic growth this year
Pakistan’s tech firm bags ‘Forbes Asia’s Best Under A Billion’ award
Pakistan Army to provide security for FIFA WC in Qatar
IHC to initiate proceedings against Imran for ‘threatening’ woman judge
Style Anatomy: Anjiya Mithani
Style 101: 9 Lines
One On One: Saadia Yasin Siddik and Miara Shaikh
سندھ میں تعلیمی بورڈز کے چیئرمینز کا انتخاب وائس چانسلرسرچ کمیٹی کے حوالے
کراچی میں جولائی، اگست کے دوران سب سے زیادہ بارش گلشن حدید میں ریکارڈ
استاد کا ہوم ورک مکمل نہ کرنے والے طالبعلم پر بدترین تشدد
رواں برس ٹرافی ہنٹنگ پروگرام کوموخرکئے جانے کا امکان
یوٹیوبر جمیل فاروقی راہداری ریمانڈ پر اسلام آباد پولیس کے حوالے
لیاقت باغ میں پی ٹی آئی کا جلسہ؛ لاکھوں روپے مالیت کے درخت و گھاس ملیامیٹ
Imran Khan booked under terrorism charges
Legendary singer Nayyara Noor passes away
PTI wins NA-245 seat by huge margin
Planes avert clash at Karachi Airport
PTI asks supporters to take to streets amid possibility of Imran’s arrest
Pakistan mulls taking upfront cost
Independence day: road to freedom
Taken to the cleaners
How Indian problems may impact Pakistan?
Revisiting Afghanistan — a year after American withdrawal
Pakistan: a theatre of neo-feudalism experiment
Degeneration of social values
This material may not be published, broadcast, rewritten, redistributed or derived from. Unless otherwise stated, all content is copyrighted © 2022 The Express Tribune.

source

Leave a Comment

Your email address will not be published.