Falling wheat, maize prices to save Rs40b

LAHORE - In the wake of sharp decline in export prices of cereals, including wheat, maize and rice in the international market, the country may save up to Rs 40 billion in terms of its import bill, The Nation learnt on Friday. Economic experts believe that while the downward tendency in wheat prices will help stop smuggling of the commodity to the neighbouring countries, the recent reduction in export price of maize in the international market may also reduce spending on edible oil import by around 35 to 50 per cent.

At present the international cereal prices, including that of maize, have generally been, on downward since June this year, favoured by global crop prospects and expected abundant wheat production flow towards world markets, experts said.

They said that the US maize averaged $184 per tonne in the first weeks of October, 35 percent below the peak in June.

They opined that lower feed use and reductions in domestic ethanol production had influenced the maize markets in recent weeks, pushing them downwards. As for wheat, the sharp drop in crude oil prices and global financial turmoil have impacted adversely on its price, dragging it down to almost 40 per cent.