Agri Biz
BD opts to explore alt-sources for wheat import
Bangladesh has opted to explore alternative overseas sources to meet demands for wheat, even with higher cost, as the war between Russia and Ukraine blocked ways for import of the country’s second major staple from these two wheat-producing nations.
“Presently we are getting no wheat from Russia and Ukraine, a situation which prompted us to allow private sector to explore new sources even if it cost a bit high,” said a food ministry official, entrusted with the task of overseeing food imports.
Mahbubur Rahman added that so far the private importers signed deals for importing 6.5 lakh tons of wheat, Bangladesh’s second major staple, from Bulgaria, Romania and even from Russia and under their agreements “Bangladesh by now received 3.13 lakh tons”.
“We expect the rest of the volume to come by end of December this year,” he said.
Bangladesh’s domestic average annual wheat production is around 10 lakh (1 million) tons against the demand for 75 lakh tons and 62pc of the imported wheat come from Russia, Ukraine and India.
Food ministry officials said, India too stopped exporting wheat in view of the global crisis to ensure their domestic food security.
After the outbreak of the war, Russia had stopped its wheat exports across the world but temporarily eased the restriction in principle under which Bangladesh received a consignment of one lakh ton in May this year.
Bangladesh last received 46,655 tons of Ukrainian wheat in May this year.
“From then on no wheat was available from either of the countries,” an official familiar with the situation said.
The officials comments came as the wheat price was increasing steadily in the past several months affecting the prices of bakery items including flour.
Food officials said Russian and Ukrainian wheat were used to be exported in much cheaper prices while India was providing it in lowest price but the situation forced Bangladesh to look for the staple in other countries including Canada.
The average per tonne wheat price in the international market on November 9 was US$353.67 which was $258.68 around the year in 2021.
Wheat importers said enhanced wheat prices in the international market exposed them to a challenge while the devaluation of Bangladesh currency has aggravated the crisis.
Food Minister Sadhan Chandra Majumder, meanwhile, said the government by now took all necessary steps to boost up the domestic food supply through raising import and food procurement to prevent any pandemic-like situation amid the current global crisis.
“Bangladesh is ready to overcome the food scarcity beefing up food supply through import and local procurement while the world economy is facing a catastrophe due to prolonged Russia-Ukraine war,” he told.
HE added, “But as part of food security precautions, we have laid emphasis as well on rice procurement (alongside wheat) from abroad and intensify vigil against hoarding with profiteering motive.”
The minister said several vigilance teams were formed with the ministry officials to enforce the vigil in different food markets across the country so none could create an artificial food crisis.
He said to beef up the food stock the government approved 10 lakh tons of rice imports while over 5.50 lakh tons already arrived and the rest 4.50 lakh tons will reach by the yearend.
Food officials said since the start of the Russia-Ukraine war, imports fell to rock bottom while the country’s overall food grain stock in the public sector now stood at over 15.83 lakh tons — over 13.64 lakh tons of rice, over 2.10 lakh tons of wheat and 12,074 tons of paddy.
Adviser to the Ministries of Finance and Commerce, Dr. Salehuddin Ahmed, emphasized today that the prices of commodities are closely linked to production and supply, and assured that the government is fully aware of the necessary steps to control these prices.
“We are very conscious of issues related to trade and commerce. My colleague, Dr. Wahiduddin Mahmud, who oversees the Ministry of Planning, is also focused on these matters. We are accustomed to handling such challenges,” Dr. Salehuddin remarked in response to reporters’ questions at the Ministry of Finance in Bangladesh Secretariat.
Earlier in the day, Dr. Salehuddin met with Edimon Ginting, the Country Director of the Asian Development Bank (ADB), at his office in the Economic Relations Division (ERD).
He noted that the government is also attentive to the impacts of imported inflation, stressing that only essential goods should be imported. “We must ensure that the additional burden on the general population is minimized and work to further reduce existing pressures,” he added.
Dr. Salehuddin also mentioned that the central bank governor is well-informed about the causes of rising inflation, which is why strict market monitoring is in place.
Addressing another question, he mentioned that the Bangladesh Bank Governor is actively managing the issue of increasing foreign currency reserves, and this topic will be raised in the upcoming annual meetings of the World Bank and the IMF.
When asked about the outcomes of his meeting with the ADB, Dr. Salehuddin expressed that development partners, particularly the World Bank and ADB, remain positive about continuing their operations in Bangladesh. He noted that the ADB and other partners have assured him of their ongoing cooperation in the development sector.
He further highlighted that the development partners are eager to advance pipeline projects in alignment with the government’s priorities.
Regarding the possibility of delaying Bangladesh’s graduation from Least Developed Country (LDC) status beyond 2026, Dr. Salehuddin acknowledged the complexity of the issue, noting that it involves various conditions and the involvement of multiple agencies, including the Ministry of Finance, Ministry of Commerce, and the National Board of Revenue (NBR). He assured that the government is closely monitoring the developments.
When asked about the demands from government employees for ration provisions, Dr. Salehuddin stated that both public and private sector employees are equally important, emphasizing the government’s priority to ensure that everyone can lead a decent life. “We are committed to ensuring that everyone benefits equally,” he said.
On his new responsibilities with the Ministry of Commerce, Dr. Salehuddin underscored the importance of local and international trade as key pillars of the economy. He assured that the government would strive to create a business-friendly and corruption-free environment in all business operations.
Recognizing the significant role of trade, commerce, and the supply chain in curbing inflation, Dr. Salehuddin promised prompt government action to address these issues.
He also mentioned plans to meet with the Ministry of Commerce and its subordinate bodies to tackle pressing matters. “You can be assured that I will do my utmost and take necessary steps swiftly,” he concluded.
The prices of daily essentials will come down gradually, Finance and Planning Adviser Dr Salehuddin Ahmed said today (14 August).
“Common people will get relief to some extent. But it can’t be said that the prices will decrease overnight,” he told reporters at the conference room of the Finance Ministry.
Responding to a question about syndicate in the market, he said, “There is nothing that has not come to our notice, I have some ideas, the governor also knows about it.
“The secretaries here are also very experienced and I told them that you will tell me everything without fear.”
Asked if any step will be taken regarding corruption, he said, “There was no discussion on the issue today.”
Responding to another question he said, “Action against corruption is an ongoing process, some processes need to be followed to punish someone. Some measures and action have already been taken.”
Responding to a question about the specific instructions given today, the finance adviser said the Industries and Agriculture ministries will do whatever needs to be done in the field of production, such as fertiliser supply and market management.
Cyclone Remal has inflicted severe damage on crops across 45,590 hectares of land in the Khulna agricultural zone, causing losses worth Tk 180.24 crore, as reported by the Directorate of Agricultural Extension (DAE) in Khulna.
According to Mohon Kumar Ghosh, Additional Director of the DAE Khulna Zone, 44,148.95 hectares of farmland suffered partial damage, while 1,450.90 hectares were completely destroyed in the four affected districts: Khulna, Bagerhat, Satkhira, and Narail.
In Khulna district, Cyclone Remal affected 3,565.65 hectares of cropland belonging to 13,796 farmers, resulting in losses estimated at Tk 42.98 crore. Bagerhat district witnessed damage to 12,611.50 hectares of cropland from 39,465 farmers, with losses amounting to Tk 97.36 crore. In Satkhira, 659.7 hectares of cropland owned by 12,156 farmers were affected, incurring losses of Tk 24.42 crore. Narail saw damage to 28,763 hectares of cropland from 8,620 farmers, with estimated losses of Tk 15.47 crore.
Speaking to BSS, Mohon Kumar Ghosh highlighted the extensive damage caused by Cyclone Remal to the southern coastal areas, particularly croplands. The affected crops include jute, Aush seedbed, aush cultivated land, groundnut, chili, bona Aman, ginger, turmeric, summer melon, litchi, mango, papaya, betel nut, sugarcane, banana, winter maize, sesame, and various Kharif season vegetables such as tomato, mung bean, and banana.
Following directives from Prime Minister Sheikh Hasina, efforts are being made to support the affected farmers. “We are working tirelessly to help the helpless farmers recover their losses,” Ghosh said, adding that the government is providing incentives and regular counseling and supervision at the field level to aid recovery.
In the coming months, the affected farmers will continue to receive various forms of government support to mitigate the impact of Cyclone Remal.
