A major section of Bangladesh traders has reportedly raised wheat prices in the domestic market on the pretext of the ongoing Russia-Ukraine crisis.
None of the two countries is any major wheat import source for Bangladesh in recent times.
Tensions mounted in Ukraine over the fear of Russian invasion that may have implications on global wheat supply chain since both are among major wheat producers.
However, the crisis in Europe should not affect the Bangladesh food market, as a Bangla daily quoting officials said the amount of wheat Bangladesh imports from Russia and Ukraine is very low.
Currently, data suggest, almost 70 per cent of Bangladesh’s imported wheat comes from India.
In the interval of two weeks, the wholesale price of wheat has increased by Tk 60-70 per mound (37.32 kilograms), BonikBarta has reported.
Wheat imported from India is currently being sold at Tk 1,105, which was Tk 1,025-1,035 a few weeks ago. The price of wheat imported from Canada has also increased by Tk 30 per mound and is now being sold at Tk 1,500, according to the report.
Mohammad Ishaq, proprietor of Shah Amanat Trading in Khatungonj of Chattogram, was quoted as saying that the top companies import the lion's share of wheat and nowadays not much wheat trading takes place in the wholesale market.
Flour mills owners procure at the market price from top importers if required, said the report. And the price rise of wheat has caused a crisis for them, he was cited as saying, adding that although top companies in the local market have already increased the price, flour mills have not done so.
At present the domestic demand of wheat exceeded 6.0 million tonnes while the local production is only 1.0 million.The gap has made Bangladesh an import-dependent country, MrIshad was quoted to have pointed out and said the government also imports a large quantity of wheat to meet the domestic demand
Wheat prices in India have also witnessed a rising trend recently. Global wheat bookings have increased mainly due to the Russia-Ukraine crisis putting pressure on the global supply chain, traders say.
Indian wheat imports rate is US$320-325 per tonne (by road and land port). The price of wheat brought by ship is $345-350 per tonne, according to the daily’s report.
BSM Group’s Chairman Abul Bashar Chowdhury, the country's leading consumer goods importer, told BonikBarta that wheat imports from Russia-Ukraine have been declining for more than a year. In the last few months, it has come down to almost zero. As a result, Bangladesh is again relying on India for its geographical and low-cost import facilities.
Mahbubul Alam, president of Chittagong Chamber of Commerce and Industry, was quoted to have said that the Russia-Ukraine crisis has affected the global market. Almost no wheat import from Russia and Ukraine has taken place recently. Resultantly, Bangladesh has been importing 80 per cent of its wheat from India.
Although the price of Indian wheat has come down but started rising again. However, it would not be much of a crisis for Bangladesh if there is any impact of any possible war situation on the global wheat prices, he was cited as observing.
According to the Bangladesh Bureau of Statistics, the country imported 5.4 million tonnes of wheat in the fiscal year 2020-21 as against 6.4 million in the 2019-20 fiscal year.