Wheat imports rise for low global prices

Wheat imports rose 43 percent year-on-year to 10.46 lakh tonnes between July and mid-October, according to data from the food ministry.

Stakeholders said low prices in the international market have fuelled imports as it has allowed local businesses to sell the cereal cheaper than rice.

Better harvests in Ukraine, Russia, Canada, Australia and the US have brought down prices in the global market, said Ilahi Dad Khan, director (procurement) at the Directorate General of Food.

Low petroleum price is another reason behind the rise in imports as it reduces freight charges, he added.

Private imports accounted for 83 percent of the wheat that arrived till October; the rest was imported by the government to carry out various social safety net schemes, according to food ministry data.

"We see higher demand for wheat flour from industries that make bread, biscuits, and bakery and confectionary items," said Bishwajit Saha, general manager of City Group, a leading commodity importer and food processor.

Operators said rising health consciousness, population growth and higher consumption of wheat-based snacks have increased the demand for the grain; three-fourth of the annual demand is met through imports.

Wheat imports rose 41 percent to 37.84 lakh tonnes in fiscal 2014-15 compared to the previous year. Overall supply increased to more than 50 lakh tonnes in the same year because of local production standing at 13.48 lakh tonnes.

Earlier this month, the US Department of Agriculture said global wheat production will hit a record high, which raised exportable supplies, and should put pressure on international prices.

Bangladesh's wheat import would be 36 lakh tonnes in the current fiscal year ending in June 2016, it said.

Wheat flour, which is around Tk 3.66 less expensive than rice at the retail level, may influence buying decisions of some consumers, the USDA said.

The agency predicts that Bangladesh's wheat consumption would rise 10 percent to 53 lakh tonnes in fiscal 2015-16.