The Economic Coordination Committee on has approved the import price of $390 per metric ton for the import of wheat from Russia.
During the ECC meeting, presided by Finance Minister Miftah Ismail, on Monday, the Ministry of National Food Security and Research presented a proposal on import of milling wheat from Russia on a government-to-government basis.
In compliance with the ECC’s May 28th decision to procure wheat from 3 million metric tons of wheat, the Trading Corporation of Pakistan (TCP) initiated the process for the import of 3MMT of wheat from the Russian Government on a G2G basis.
The meeting was informed that initially an offer of $410/MT was made by the Russian state-owned enterprise. Following the talks, a negotiated price of $400/-MT was offered.
Finally, the price of $399.50/MT for a supply of 120,000 MT +/- 5 per cent MOLSO of milling wheat was offered by M/s Prodintorg, a state-owned company of the Government of Russia, through G2G arrangements
The ECC meeting observed that there’s a declining trend in international wheat prices which is expected to drop further in the coming days.
The meeting decided that the Russian side may be offered the price of $390 and the offer may be canceled if they do not accept the offer.
The Russian invasion of Ukraine had an adverse impact on global wheat prices as the two countries are the biggest producers of wheat grains.
Wheat prices, however, are expected to go down, Ukraine and Russia signed a landmark deal with Turkey and the United Nations on July 22 aimed at easing a global food crisis caused by blocked Black Sea grain deliveries.
Turkey formally opened a special joint coordination centre to oversee the exports in Istanbul last Wednesday, which is being staffed by civilian and military officials from the two warring parties and delegates from Turkey and the UN.
Their primary assignment involves monitoring the safe passage of Ukrainian grain ships along established routes and overseeing their inspection for banned weapons on the way into and out of the Black Sea.
The blockage of deliveries from two of the world’s biggest grain exporters has contributed to a spike in prices that has made food imports prohibitively expensive for some of the world’s poorest countries.