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For a long time, the major sources of cheap wheat in Bangladesh have been the Black Sea countries of Russia and Ukraine. Three years ago, wheat imports from these two countries were disrupted during the Russia-Ukraine war. At that time, India and Canada had become major sources of wheat imports for Bangladesh as alternatives due to the war. Now, importers are turning to Russia again for cheap wheat imports. However, another source of cheap wheat imports is Ukraine.
According to the National Board of Revenue or NBR, about 49 lakh tons of wheat were imported in the first 10 months of the current 2024-25 fiscal year (July-April). During this time, 54 percent of the total wheat imported came from Russia, at a cost of about 700 million US dollars. The record for higher wheat imports from Russia was in the 2006-07 fiscal year. At that time, 57 percent of the total imports were from Russia.
Another source of cheap wheat imports is Ukraine. Before the war in 2022, an average of 23-30 percent of the total imports were imported from Ukraine. Imports from the war-torn country have fallen to 14 percent in the first 10 months of the current fiscal year. As a result, dependence on Russia for cheap wheat has increased.
Importers said that due to low prices and high supply, wheat imports from Russia are increasing. However, over-reliance on a single country is not good for the supply system of daily necessities. If, for some reason, wheat imports from Russia are disrupted or prices increase, it will affect the country's market. However, traders have now started importing wheat from Brazil at a low price. But the quantity is small. For example, in the current fiscal year, 113,000 tons of wheat were imported from the country, which is 2 percent of the total imports.
Bangladesh imports two types of wheat. First, low-protein wheat, which is used to make cakes, biscuits and other bakery products. This wheat is imported from the Black Sea region and European Union countries. Second, high-protein wheat is used to make parathas, pasta, and noodles. This wheat is imported from Canada, Australia and the United States. Again, two types of wheat are mixed to make flour. Apart from this, wheat is also used as animal feed.
Canada was the top source of wheat in Bangladesh for 8 consecutive years from 2008-09. The country was also the top supplier in the year after the start of the Russia-Ukraine war. High-protein wheat is imported from the country. Along with Canada, high-protein wheat is also imported from the United States and Australia, but in smaller quantities. High-protein wheat imports are decreasing due to the increase in cheap wheat imports. In the first 10 months of the current fiscal year, high-protein wheat accounted for 18 percent of the wheat imported, while the remaining 82 percent was ordinary wheat. A few years ago, the high-protein wheat import rate was 30 percent.
Import data shows that wheat was imported from Russia at $251 to $261 per ton in April. The price per kg is 31-32 taka, which is lower than in other countries. Again, the price of high-protein wheat imported from Canada is $298 to $330 per ton. The price per kg is 36 to 40 taka. Wheat has been imported at this price for several months.
14 to 15 percent of the country's wheat demand is produced locally. The remaining 85 percent of the demand has to be imported. A decade ago, $100 crore in foreign exchange was spent on wheat imports. Due to the increase in demand, the cost of wheat imports has exceeded $200 crore. In the last fiscal year, 2023-24, wheat worth $205 crore was imported. In the 10 months of the current fiscal year, wheat worth $134 crore was imported.
When asked, Amirul Haque, Managing Director of Delta Agro Food Industry, a food grain importer, told Prothom Alo that many times there are banking problems when importing from Russia, although there is no ban on food grain imports. However, single dependence on any country should not be increased in importing daily necessities. Imports need to be made from diverse sources.
Source: Online/GFMM
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