Urdu
Karachi – Tuesday, May 09, 2017: Pakistan Mercantile Exchange (PMEX), the country’s only commodity futures exchange, launched Wheat Weekly Futures Contracts duly approved by the Securities and Exchange Commission of Pakistan (SECP).
This is the third listing of an agricultural commodity on PMEX electronic trading platform within the last two years after red chilli and super basmati paddy rice where compulsory delivery is a key feature. The trading of Wheat at PMEX will provide an opportunity to the buyers to procure quality certified product as per contract specifications in an efficient and transparent manner. It will also help farmers to get better price and timely payment of their produce sold. To launch Wheat the Exchange has collaborated with SGS Pakistan for grading & quality certification and Pakistan Agriculture Coalition (PAC) for farmers’ awareness & trade facilitation to ensure the increased participation of farmers at the Exchange. The listed contracts are based on district Sheikhupura/Muridke, the major wheat growing districts of Punjab. Furthermore, on a similar pattern as red chilli, listing of this contract will pave the way for collateralized lending by banks against warehouse receipt instead of land papers.
Wheat is the most popular food crop of Pakistan and its products are used in a number of ways. Pakistan is the world’s 7th largest wheat producer and its contribution is 3.48% of world production. Being the staple diet of majority of people in Pakistan, it dominates all crops in acreage and production. Wheat accounts for 9.9 percent of the value added in agriculture and 2.0% of GDP of Pakistan. Punjab is the major wheat producing province of Pakistan and it alone contributes around 75 % of total production followed by Sindh 16 % and remaining 9 % from Khyber Pakhtunkhwa (KP) and Balochistan.
At the launch of the Wheat Contract, Mr. Ejaz Ali Shah, Managing Director, PMEX said, “Launching of Wheat Futures at the Exchange brings us one step closer of our resolve to connect our business operations to the local economy. With the availability of this new contract, it would become convenient for market participants to trade in a unified and transparent manner. The national level participation of buyers and sellers across Pakistan will enhance the price discovery process of the commodity manifold, bring efficiency in the quality production and provide an opportunity to farmers to get a better price of their produce.”
