Bangladesh Turns to India Again for Wheat as Global Prices Soar

Bangladesh is once again turning to India for wheat imports after a four-year hiatus. This decision comes as global wheat prices rise due to disruptions in supplies from Russia and Ukraine, while domestic rice prices have reached an all-time high in Bangladesh.

The South Asian country has booked over 200,000 tonnes of Indian wheat at between $306 and $326 per tonne for shipment by rail. India's geographical proximity means shorter transit times and lower freight costs compared to other alternatives.

India had imposed restrictions on wheat exports in 2022 due to a domestic surplus created after a record harvest that year, as well as disruptions caused by the Russian invasion of Ukraine. However, with the current Black Sea supply chain affected by attacks on shipping and grain terminals, India is now re-emerging as a major wheat supplier.

Bangladesh's importers are seeking Indian wheat due to its lower cost compared to alternatives from countries like Australia, which has seen prices rise to $480 per tonne. The country's refined wheat flour prices have jumped 17% over the past month due to these higher costs.