“It was therefore decided that Russian side may be offered the price of $390 and offer may be canceled if they do not accept the offer.”
By Staff Reporter
ISLAMABAD: Pakistan is likely to accept import offers made for wheat well below $400/ton for a quantity of 300,000 tons at a government-to-government arrangement with Russia.
The Economic Coordination Committee (ECC) of the Cabinet viewed that the Russian offer of $400/tonne is on the higher side as wheat prices in the global market are under pressure on rising supplies from the northern hemisphere’s harvest.
Pakistan has planned to import at least two million tonnes of wheat from Russia with cash payment amid the continuing sanctions on Moscow that have made trade difficult with the world’s largest wheat exporter.
Earlier, the possibility of barter trade with Russia was being explored due to sanctions imposed by the West.
The state-run grain body Trading Corporation of Pakistan (TCP) initiated 300,000 tonnes of the wheat import process from Russia on a government-to-government basis on May 28, 2022, on a directive from the federal cabinet. Later an MoU was signed between Russian SOE and TCP on wheat import.
The Prime Minister’s office constituted a committee under Tariq Fatemi, advisor to the PM on Foreign Affairs to negotiate with the Russian embassy on the price issue of imported wheat.
Initially, Russia offered a wheat price of $410/ton.
“Meanwhile, a Russian delegation met with the Minister for Commerce and offered a reduced price of wheat @ $405/-MT. Later on, the price was further reduced to US$ 400/- MT,” a statement issued on Friday after the ECC meeting said. Minister for Finance and Revenue Miftah Ismail presided over the ECC.
“Finally, the Ministry of National Food Security & Research on the recommendations of the Ministry of Commerce submitted the price offered by M/s Prodintorg, a state-owned company of the government of Russia @ $399.50/- MT for the supply of 120,000 MT +/- 5 percent MOLSO of milling wheat through G2G arrangements for the consideration of the ECC of the Cabinet.”
The statement said the ECC observed that “there is a declining trend in the price of wheat which may further reduce in the coming days”.
“It was therefore decided that Russian side may be offered the price of $390 and offer may be canceled if they do not accept the offer.”
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