Pakistani wheat exporters worried over losing traditional market in Afghanistan

[ComradePashtun]

http://tribune.com.pk/story/1018459/pakistan-plans-negotiations-with-afghanistan-over-wheat-export/

Altering the structure of imports is the way forward. A more diverse source of food stuff imports adds up to more competition thus cheaper price for afghan consumers. Lesser reliance on Pakistan is also from political perspective a good thing.

[ComradePashtun]

The article mentions Tajikistan which is capturing the market has me wondering...never knew the country was an exporter of wheat. Could it be Kazakhstan instead?

[Da Bannu Mazdigar]

Good for them if it is for reasons other than political but as far as i know tajikistan was negotiating wheat import from pakistam recently leaving india as the only choice other than pakistan in the region

Only india can compete the quality and price of wheat to Pakistan in the region

[Orakzai]

Lesser reliance on Pakistan is also from political perspective a good thing.

A bad thing for Afghanistan. The Afghans are giving Pakistan an excuse to blockade the border. They don't need Pakistani products and they whine endlessly about cross-border terrorism? Ok, lets just close the border. We won't have to worry about the TTP or cross-border smuggling anymore. Win-win, right? Not quite, since while Afghanistan doesn't want Pakistani products, their economy is still heavily dependent on us. Most of their leaders who've made a fortune out of smuggling will go rogue and Afghanistan will go from 10,000 BC with shiny democratic institutions to just plain old 10,000 BC.

[Samandri]

Most of the wheat from Pakistan to Afghanistan go through smuggling. It badly affects Khyber Pakhtunkhwa and Punjab

For example

Wheat being bought for smuggling to Afghanistan

Wheat being smuggled to Afghanistan seized

[Samandri]

http://tribune.com.pk/story/1018459/...-wheat-export/

Altering the structure of imports is the way forward. A more diverse source of food stuff imports adds up to more competition thus cheaper price for afghan consumers. Lesser reliance on Pakistan is also from political perspective a good thing.

Much of wheat is not imported but smuggled from Pakistan........

According to Zahid Shinwari, president of the Khyber Pakhtunkhwa Chamber of Commerce and Industries, the KP loses some three million tons of wheat to smugglers every year, causing price spikes of over 33 percent.

http://www.ipsnews.net/2014/06/wheat-smugglers-bring-high-prices-and-hunger/

[Samandri]

Good for them if it is for reasons other than political but as far as i know tajikistan was negotiating wheat import from pakistam recently leaving india as the only choice other than pakistan in the region

Only india can compete the quality and price of wheat to Pakistan in the region

Tajikistan to import wheat, rice from Pakistan

[Friends of Baloch]

The article mentions Tajikistan which is capturing the market has me wondering...never knew the country was an exporter of wheat. Could it be Kazakhstan instead?

Good news. Afghanistan is finally aligning itself once more into its natural environment after 25 years of desparate paki interference and attempts to bring Afghanistan into the orbit of stinking south asia.

Afghans have nothing in common with Dravidian pakis and should be giving all of their business to their natural neighbours in the rest of Central Asia.

[tilla_jogian]

Pakistan gifted wheat to our Afghan brothers couple of months ago.

Pakistan to send wheat to Kunduz as 'goodwill gesture'

http://www.dawn.com/news/1214611

Anyway 2015 has been good year for Pak with surplus wheat. But smuggling to Afghanistan effect poor people of Pakistan. Ending smuggling of wheat will benefit both countries.

[Da Bannu Mazdigar]

Much of wheat is not imported but smuggled from Pakistan........

According to Zahid Shinwari, president of the Khyber Pakhtunkhwa Chamber of Commerce and Industries, the KP loses some three million tons of wheat to smugglers every year, causing price spikes of over 33 percent.

http://www.ipsnews.net/2014/06/wheat-smugglers-bring-high-prices-and-hunger/

Last time punjab refused to provide wheat to KPK and we suffered high prices because of smuggling to Afghanistan.

In the past when the Ghulam khan border was open,People would smuggle cattles into Afghanistan and the prices of cattles would increase many folds in Waziristan/Bannu/Lakki marwat/DIK because of massive smuggling into Afghanistan.This was the case with wheat and even vegetables.

if you have noticed,the prices of cattles during eid are very stable from many years because the border is closed now

[ComradePashtun]

Luffy and Bannu,

It seems you guys did not read the article:

"The meeting was convened on the request of Punjab government, which had pointed out that Pakistan’s wheat export market in Afghanistan has been replaced by Tajikistan’s produce. It sought federal government’s intervention to regain the market as Pakistan has huge quantity of surplus wheat and flour"

I can guess the following:

Panjab has huge quantity of surplus; and KP might be in short supply - given the demand and higher prices in Afghanistan this makes export to Afghanistan both for suppliers and traders more profitable, even a worthwhile smuggling.

I recalled the government's intervention that I read some time back. Here is a more detailed FOA review of the sector in Pakistan if someone is interested for a detail read. Basically Pakistan wheat production is at subsistence level and huge surplus as per the claims of entities in Panjab in the article seems to be untrue. In fact the report states Pakistan would need to scale up production by 12% (or something) to meet its own demand by the end of the decade.

I haven't read the report except just first couple page but I had known this from somewhere that the government actually purchases wheat from farmers, roughly 30-40% of the entire production and then re-supplies to the market. One of the objective is to control price.

Here is what the report says, much surprising the government actually incurs losses:

"Farmers in Pakistan retain about one-third of their wheat production
for seed and household food consumption. The government is the
main buyer of farmers’ wheat, with actual volumes of government
procurement often reaching 25 to 30 percent of total production,
driven by both food security and market intervention objectives.
Given the predominantly subsistence nature of wheat farming,
government procurement may reach 35 to 50 percent of marketed
wheat. While food security is an important concern in Pakistan,
there is little doubt that high volumes of State wheat procurement
leave little room for private sector trade and investment in the post harvest
supply chain.
In 2010/11, estimated monetary losses incurred by government operated
wheat procurement and storage totalled PKR 3 750/tonne
(approximately USD 44/tonne), or about 13 percent of the total costs.
Assuming that the government purchases 6 to 7 million tonnes of
wheat per year, losses from government procurement operations
can reach PKR 23 to 26 billion (USD 248 to 289 million) per year."

So one could speculate that the suppliers and traders due to profits they make from exporting to Afghanistan are making up the "huge surpluses". It hurts the poorest in Pakistan for which they couldn't care much.

The report is also inaccurate about Tajikistan capturing the market, it could well be Kazakhstan which the biggest supplier of wheat with real huge surplus. Pres Ghani when visited the country the import of wheat was atop of his agenda among other things.

In short, its a win win for both Afghan and Pakistani consumers. You get to keep your wheat which wont drive the prices up and we actually get our supplies around 30% cheaper (Pak wheat $350 a tonne, and from other import source(s) £200 a tonne).

[ComradePashtun]

The FAO review of the sector: http://www.fao.org/docrep/018/i3251e/i3251e.pdf

[ComradePashtun]

A bad thing for Afghanistan. The Afghans are giving Pakistan an excuse to blockade the border. They don't need Pakistani products and they whine endlessly about cross-border terrorism? Ok, lets just close the border. We won't have to worry about the TTP or cross-border smuggling anymore. Win-win, right? Not quite, since while Afghanistan doesn't want Pakistani products, their economy is still heavily dependent on us. Most of their leaders who've made a fortune out of smuggling will go rogue and Afghanistan will go from 10,000 BC with shiny democratic institutions to just plain old 10,000 BC.

Your are a retarded individual so are excused for saying stupid things. So we should not criticize Pakis for cross-border and support of terrorism? Hello?! You can certainly do that but you couldn't afford it as Afghanistan is the life-line of your economy - the second biggest export market. Pakis are shrewd businessmen and you seem to be an idiot. Pakistan is more dependent on us. We can do away with food and medicines import from Pakistan. A country prospers through intra-regional trade and foremost with its neighbor and likely markets. Without us Pakistan is a closed economy. The more Afghanistan prospers and Pakistan trades with the more its economy will grow. You are an idiot anyway.

[Orakzai]

Your are a retarded individual so are excused for saying stupid things. So we should not criticize Pakis for cross-border and support of terrorism? Hello?! You can certainly do that but you couldn't afford it as Afghanistan is the life-line of your economy - the second biggest export market. Pakis are shrewd businessmen and you seem to be an idiot. Pakistan is more dependent on us. We can do away with food and medicines import from Pakistan. A country prospers through intra-regional trade and foremost with its neighbor and likely markets. Without us Pakistan is a closed economy. The more Afghanistan prospers and Pakistan trades with the more its economy will grow. You are an idiot anyway.

An open border with Afghanistan has brought nothing but pain for Pakistan. The profit Pakistani businessmen receive is nothing compared to the loss we make through Afghan cross-border smuggling and violence. What's necessary is to seize the Wakhan Corridor from Afghanistan (pretty sure you guys won't mind since you've practically given off most of your country to the Taliban) and start trading with Central Asian Countries. Then we can shut the border and watch as Afghanistan implodes.

[DSM0305]

An open border with Afghanistan has brought nothing but pain for Pakistan. The profit Pakistani businessmen receive is nothing compared to the loss we make through Afghan cross-border smuggling and violence. What's necessary is to seize the Wakhan Corridor from Afghanistan (pretty sure you guys won't mind since you've practically given off most of your country to the Taliban) and start trading with Central Asian Countries. Then we can shut the border and watch as Afghanistan implodes.

Of course Pakistan will. I mean Pakistan is the new super power. Not only will you conqueror Wakhan Corridor, but will conqueror the entire world.

Pakistan will stand for:
P = Punjababad
A = Asiabad
K = KAfrikabad
I = Indiabad
S = SuRussiabad
T = The newly named European continent, TEuropabad
A = Americabad
N = Naustraliabad

The national food will be daal. Pork and wine will be allowed for the honorable Pakistani army. Then you gonna build a Hera mandi in Saudi Arabia next to a mosque, so these Saudis can truly become Muslims.

Everyone, lets pray for Pakistani success, so we all can become true Muslims.