You are here: Home » International » News » Others
Business Standard

Bangladesh tries to secure wheat from Russia as India stops exports-sources

The supply deal with Russia, the world's biggest wheat exporter, could help Dhaka in meeting its needs below the elevated global prices, industry officials said

Topics
Bangladesh | Russia | wheat procurement

Reuters  |  DHAKA/MUMBAI 

Wheat

is trying to secure wheat supplies from in a government-to-government deal after it's biggest supplier India banned exports of the grain last month to contain local prices, government and trade officials told Reuters on Wednesday.

The supply deal with Russia, the world's biggest wheat exporter, could help Dhaka in meeting its needs below the elevated global prices, industry officials said.

is holding a virtual meeting with on Thursday to finalise the deal, said a senior official with Bangladesh's food ministry.

"We'll initially seek at least 200,000 tonnes of wheat from Russia," said the official, who declined to be named.

The Ministry of Food did not immediately respond to a request for comment.

imports around 7 million tonnes of wheat and last year more than-two thirds of that came from India.

After India's export ban, Bangladesh tried to secure supplies via tenders but has cancelled them because of high prices.

Bangladesh was paying less than $400 per tonne on the cost and freight basis for Indian wheat, but after the ban other suppliers started quoting above $460, which raised local prices in Bangladesh, said a Mumbai-based dealer with a global trading firm.

The Bangladesh government is struggling to contain soaring commodity prices, with inflation at an eight-year high in May, while the country's wheat stocks hit their lowest in three years at 166,000 tonnes.

"There are many countries who can supply wheat to Bangladesh, but key issue is price. can offer discount over global prices," said a New Delhi-based dealer with a global trading firm.

But paying for Russian wheat would be a challenge for Dhaka given Western sanctions on Moscow.

"All the issues, including payment, will be discussed in the meeting. Let's see," the government official said.

Bangladesh would initially buy small amount of Russian wheat and will increase buying if "all goes well on arranging shipments and payment's front," said the New-Delhi based dealer.

(Reporting by Ruma Paul and Rajendra Jadhav;Editing by Tomasz Janowski)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, June 23 2022. 11:49 IST
RECOMMENDED FOR YOU
.