Wheat flour prices rising on higher import costs
Flour prices in Bangladesh have continued to rise, driven by increasing prices of wheat in the global market and falling imports, said industry operators yesterday.
Consumers had to pay Tk 34 to buy one kilogramme of flour in November in Dhaka, which was 19 per cent higher from Tk 28.69 a year ago, data from the Food and Agriculture Organisation showed.
Prices of flour have been rising since
July and the upward trend continued until November, discouraging price-sensitive consumers.
"Demand for flour has reduced as prices are high. Our capital requirement has increased, while it has become difficult to make a profit because of the higher prices," said Sk Wazed Ali, president of the Auto Flour Mill Business Cooperative Society.
The food ministry in its daily food situation report said wheat price was $322.8-$333 per tonne on December 10. And the possible prices of imported wheat would be Tk 33.69-Tk 33.86 per kg.
A year ago, the prices of the grain, the second most-consumed items in Bangladesh, were $238.6-$257 per tonne, food ministry data showed.
Against the backdrop of the increasing cost, businesses have become cautious in importing the grain. In Bangladesh, most of the local demand is met through imports for inadequate domestic production.
Bangladesh is the fifth-largest wheat importer after Egypt, Indonesia, Algeria, and Brazil.
"There is concerns among businesses that it would be tough to sell the grain because of such a high import cost," said Anup Kumar Saha, chief operating officer of Nabil Group, one of the biggest wheat importers.
Wheat imports declined 23 per cent year-on-year to 18 lakh tonnes between July 1 and December 14 from 22 lakh tonnes a year ago, owing to a massive drop in private imports, according to data from the food ministry.
Globally, production has declined for unfavourable weather in major producing countries.
On the one hand, global prices soared for reduced production. On the other hand, the depreciation of the taka caused a spike in import costs, said Abul Bashar Chowdhury, chairman of BSM Group, a Chattogram-based major commodity importer.
"All are importing in small quantity because of their worries about potential losses," said Biswajit Saha, director for corporate and regulatory affairs of City Group, one of the largest commodity importers and processors in the country.
Comments