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Market Watch

Govt worries about wheat sales to WFP

KARACHI-Government's hopes to supply 300,000 tonnes of wheat to Afghanistan are fading after a US wheat donation to feed Afghans driven from their homes by war and drought, a senior official said on Friday.

However, World Food Programme (WFP) spokesman Wagdi Othman said the US donation for Afghanistan would not affect the WFP's agreement with Pakistan.

The US donation to the WFP was due to reach the war-torn country by the end of January. Shaukat Usman, a senior official in the Ministry of Food and Agriculture, said Islamabad was pushing to go ahead with all deals it had struck with the WFP despite new supplies from other countries.

"The US donation could cancel our deal with the WFP. I am not optimistic that it will materialise," Usman said. Wheat purchases by UN aid agencies are expected to reach one million tonnes in 2001-02 (July-June), compared with last year's 300,000 tonnes.

Islamabad, following the US-led war on Afghanistan in October, had initially hoped to sell at least 500,000-600,000 tonnes to UN aid agencies from its wheat stockpile of 3.5 million tonnes.

The Pakistani government struck one deal with the WFP to provide 300,000 tonnes of wheat in the third week of October, but deliveries have yet to begin. Othman said the US donation would reach Pakistan and Iran by the third week of January.

"Around 60,000 tonnes will arrive in Karachi on January 21 and the remaining quantity at the port of Bandar Abbas on January 23," he said.

Courtesy The News December 29, 2001

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