Govt Looking to Import Wheat from Russia at Reduced Price

Considering the declining trend in the price of wheat, which may further reduce in the coming days, the Economic Coordination Committee (ECC) of the Cabinet on Friday decided that the Russian side may be offered the price of $390 per tonne. The meeting, chaired by Finance Minister Miftah Ismail, also decided that the offer may be canceled if the Russian side does not accept the offer. Ministry of National Food Security and Research submitted a summary on the supply of milling wheat from Russia on government-to-government (G2G) basis. It was informed that in compliance with the decision of the ECC on 28-05-2022 for the import of 3.00 million tonnes (MMT) of wheat, Trading Corporation of Pakistan Limited (TCP) initiated the process of import of wheat from Russia on a G2G basis. In this context, an MoU was signed between a Russian state-owned enterprise and TCP on 08-06-2022. Initially, the government of Russia offered wheat at the price of $410 per tonne. A committee was constituted by the Prime Minister’s office under Special Assistant to the Prime Minister on Foreign Affairs Tariq Fatemi to negotiate with the Russian Embassy on the price of imported wheat. Meanwhile, the Russian delegation met with the Minister for Commerce and offered wheat at a reduced price of $405 per tonne. Later on, the price was further reduced to $400 per tonne. 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 Russia at $399.50 per tonne for the supply of 120,000 tonnes +/- 5 percent MOLSO of milling wheat through G2G arrangements for the consideration of the ECC of the Cabinet. It was observed in the meeting that there is a declining trend in the price of wheat which may further reduce in the coming days. It was therefore decided that the Russian side may be offered the price of $390 per tonne and the offer may be canceled if they do not accept the offer. Federal Minister for Power Khurram Dastgir Khan, Tariq Fatemi, Minister of State for Petroleum Musadik Malik, Special Assistant to the Prime Minister on Government Effectiveness Dr. Muhammad Jehanzeb Khan, Coordinator to the PM on Economy Bial Azhar Kayani, federal secretaries and other senior officers attended the meeting.