Burden on forex exchange

The government would have to spend at least one billion dollar on the import of wheat, as the prices in international market have touched $400 per metric tonnes, the industry stakeholders told Daily Times on Tuesday. The government announced on Monday to import 2.5 million tonnes of wheat to build strategic reserves for two years. The price of wheat in international market also increased after the announcement of import by Pakistan. Earlier the price was roaming at $380 but as soon the wheat import was announced the rate in international market swell to $400 per metric tonnes, said a trader, Sharif Hussain.
If the tender are floated then there would be a speculation in international market and price would ultimately increase and definitely touch $450. Ukraine and Russian wheat would come into market by July and shipments would be made in August,” he said.
FOB price of wheat is around $320 to $340 while CFI (Cost Insurance Freight) price is $400-425, as freight also increased rapidly because of an increase in petroleum prices in the international market.