Pakistan: Pakistan Subsidizes Wheat Exports

The Government of Pakistan has authorized an export subsidy of up to $159 per metric ton to facilitate exports of up to 2 million metric tons of wheat. A relatively high wheat support price, rising procurement and flat offtake resulted in record stocks of government-held wheat following the 2017 harvest. The subsidy is intended to reduce stocks prior to the conclusion of the upcoming 2018 harvest. Except to some regional markets, exports without a subsidy are not commercially viable because Pakistan’s domestic wheat prices are significantly higher (80 percent) than prevailing international prices.

Pakistan: Pakistan Subsidizes Wheat Exports