India Reopens Wheat Exports to Bangladesh Amid Global Price Surge

India has resumed significant wheat exports to Bangladesh after easing export restrictions in late August. The move comes as disruptions in the Black Sea region have pushed global wheat prices to their highest levels in three years.

The Russia-Ukraine conflict has severely impacted grain shipments from the Black Sea region, with combined wheat exports from both countries dropping to eight million metric tonnes between July and September, down from 16 million tonnes during the same period last year. This has led to a surge of approximately 40% in wheat futures prices since June lows.

The price of refined wheat flour in Dhaka has risen 17% in the past month, adding pressure to Bangladesh's food security. Prior to India's export ban in May 2022, it accounted for nearly 70% of Bangladesh's wheat purchases.

Delivered offers into Bangladesh are priced around $305 to $326 per tonne, making Indian wheat more competitive as global alternatives have become costlier due to the Black Sea supply crunch. This has reopened a nearby, lower-cost channel for Bangladesh, which needs to import over seven million tonnes of wheat annually.