Pakistan: Grain and Feed Update

The Government of Pakistan procured 5.0 million metric tons of wheat from the recently concluded harvest, well below the 6.2 million ton target. Larger than expected government-held stocks at the outset of the procurement campaign appeared to limit government purchases. As global wheat prices continue to fall, widening the gap between Pakistan’s effective domestic price floor and foreign prices, the government increased the temporary import tariff on wheat from 25 to 40 percent. At this stage, barring a major policy change or rise in foreign prices, it appears that Pakistan is largely removed from the international wheat market. 2014/15 rice exports are off to a faster than expected start and exports are expected to reach 4.0 million metric tons, up 200,000 metric tons from the previous estimate.

Pakistan: Grain and Feed Update