ECC approves 0.3m wheat import from Russia

The Economic Coordination Committee (ECC) on Monday approved the import of 0.3 million tons of wheat from Russia on a government-to-government basis.

Pakistan will import at a rate of $372 per ton.

Earlier, ECC had approved the import of wheat at $373 per ton through a tender by TCP.

So, the deal with Russia is cheaper compared to the deal inked through floating tender.

Last week, an economic decision-making authority accepted this contract after the lowest bidder in a tender offered a price of $373 per ton.

A $384 per ton price was offered by the second-lowest bidder.

The relevant ministry had previously notified the economic coordination committee that the contract for the deal with Russia on a government-to-government basis was still being finalised.ECC approves tender to import 120,000 MT Wheat

Sources claimed that Russia had given a lower price for the import of 300,000 metric tonnes of wheat—$372 per ton—than the lowest bidder, who had set his price at $373 per tonne.

The offer to import wheat from Russia, however, had not been disclosed to the economic coordination committee by the relevant ministry, which deals with wheat imports.

Instead, the group in charge of making economic decisions was notified that talks with Russia for the import of wheat on a government-to-government basis had not yet been resolved.

Even if Prime Minister Shahbaz Sharif had directed that the possibility of importing wheat on a G2G basis be investigated in an effort to conserve every dollar available to the country, this is still the case.

The Economic Coordination Committee (ECC) was made aware of the possibility for the government to enter into a government-to-government agreement to buy wheat from Russia at $280 per tonne last year.

The possibility to import wheat at a lower cost was lost, however, due to administrative obstacles.

In order to obtain authorisation for the import of wheat at prices higher than those offered by the Russian side, the concerned ministry planned to retell the same tale.

A lower offer from the Russian side was not disclosed by the ministry to the decision-maker.

During the PTI administration, middlemen and grain hoarders fanned the wheat crisis in the nation, driving up prices.

Another issue that contributed to the market’s loss of wheat flour was the smuggling to Afghanistan.

The administration has been trying to develop strategic reserves in order to deal with any wheat shortages the nation may experience, keeping in mind the situation encountered in the past.

The wheat supply at the government storage had suffered damage as a result of the rains and floods, MD PASSCO Saeed Ahmad Nawaz had recently informed the attendees.

He said that the damaged wheat had been effectively isolated from the wheat that was fit for human consumption and that it was now being provided.

The issue of food security was looming in the months to come due to the prevailing circumstances.

Additionally discouraging the farmers from planting a wheat crop were the high prices of urea, power, and other inputs.

In the upcoming months, this predicament might also threaten food security.