Flour business could help earn billions of dollars through exports

Small directive from the government allowing export documents routed through Customs’ WEBOC system.

ISLAMABAD (Dunya News) – Flour can easily become a fast growing foreign exchange earning contributor if the government just made small changes in the regulations which could help earn about a billion dollar per annum through exports of the commodity.

A leading industrialist associated with flour business said that a clear policy on wheat has been required. The export of flour has not be allowed through WEBOC system.

A small directive from the government allowing export documents routed through Customs’ WEBOC system can play wonders for the exports of the country.

Giving example when contacted one economic expert said that the Pakistan brotherly country Turkey has been earning around $1.1 billion through the export of flour or commonly known as “Atta”.

He said that the wheat output in Turkey has been around 21 million tons per annum currently with consumption of around 19 million tons with some balance from previous year stock, Turkey easily exports around $1.1 billion of flour per annum. They have even given a target to increase flour exports to $1.5 billion.

The same economic expert added that in Pakistan output reaches to 23 million tons to 25 million tons. If the production of wheat around 23 million tons and our consumption varies between 19 to 21 million tons per annum, each the country has stock of 2 to 3 million tons.

The left over stocks mostly become part of wastage or destroyed as mostly the wheat has been lying under the sun in different areas, whereas if the country allowed exports, exchequer facing minimal amount.

According to the recent data collected from the Pakistan Bureau of Statistics during July to November of 2018 around 457,000 metric tons of wheat was exported amounted to 96 million dollars, fetching approximately $210 per metric tons on an average, while earning from export of flour might $120 million to $130 million.

Pakistan Flour Mills Association Southern Region in a letter to Razak Dawood, adviser to Prime Minister on Commerce and Industry said that with the recent devaluation of Pakistan Rupee, there are emerging opportunities for wheat flour export which will fetch higher price than raw wheat export and will revitalize the idle spinning creating job opportunity.

Despite no restrictions on wheat flour export in small quantities are only allowed on manual bill of entry.

Only the winners of government tender are allowed to export through WeBOC. As a result exporters and millers are reluctant to do large quantity and time bound export contracts.

The letter further said if this hurdle is removed a sustained wheat export business can built, Pakistan has excess wheat and idle milling capacity.