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Market Watch

Iraq may allow private sector to handle shipment: Wheat exports

KARACHI, Jan 9: Iraq has agreed to give due consideration to Pakistan's request to allow private sector for handling wheat exports, being purchased under phase 11 of the UN programme 'oil-for-food', official sources said.

Under the programme Iraq has already invited bids for the purchase of 35,000 tons wheat through international tender and January 5, 2002 was the last date for filing of bids.

Although the Trading Corporation of Pakistan has already submitted its bid for the export of 35,000 tons wheat to Iraq, after deregulating wheat exports the government is keen to involve private sector in the exports.

During recent visit to Iraq, TCP chairman Syed Masood Alam Rizvi took the matter with the Grain Board of Iraq (GBI) for allowing the private sector to participate in wheat exports.

Sources said Iraq had indicated to allow private sector to handle wheat if the tender, submitted by the TCP for export of 35,000 tons, is awarded to Pakistan. However, the Iraqi government has laid down a condition that the entire shipment activity of the private sector should be under the supervision of the government agency.

Similarly, under the new wheat specifications GBI has allowed 0.2 per cent of inorganic and 0.8 per cent of organic matters. But the Iraqi board has shown extra leniency by allowing Pakistan to give its own wheat specification.

However, Iraqi authorities pointed out that specifications coming from Pakistan will be considered and the answer could be negative or positive. But the GBI is not ready to compromise on the gluten content of wheat, which stands at 28 per cent, sources said.

It has been clearly conveyed to the Iraqi authorities that Pakistan is obliged that Iraq had accepted "our wheat and because of this we have managed to make food-hold in the world market".

Looking at good prospects for Pakistani wheat in Iraq, the government is planning to set up silos at Port Qasim and establish two laboratories to ensure quality.

The Grain Board of Iraq has fixed April 8, 2002 as last shipment date for replacing the rejected two ship loads of 62,000 tons of wheat and the TCP is presently working with the Passco and the Punjab government for arranging the supplies, official sources said.

 
 January 10, 2002

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