India Reopens Wheat Exports to Bangladesh Amid Global Supply Shifts

India has resumed wheat exports to Bangladesh after lifting its export restrictions in late August. This move has opened up a cheaper channel for Bangladesh, which had previously sourced nearly 70% of its wheat from India before a ban was imposed in May 2022. Local buyers have already booked over 200,000 tons of Indian wheat, marking the first substantial purchases since 2022.

The decision to lift export restrictions came due to plentiful domestic supply in India. As a result, Bangladesh is now taking advantage of lower costs and faster transit times by importing wheat from its neighbor. Most of the renewed flow is expected to move by rail, according to people familiar with the trades.

Russia's invasion of Ukraine has disrupted grain routes, forcing importers across Asia, Africa, and Europe to find alternative suppliers. Bangladesh had previously sourced wheat from Argentina, Canada, Russia, and Ukraine, but the Black Sea region accounted for only 40% of its purchases. Higher global prices have made Indian wheat more appealing, with delivered offers coming in around $305 to $326 per ton.