Wheat prices could cool down in the local market

Export resumes from Ukraine

Combine harvesters harvest wheat in a field near the village of Tomylivka in the Kyiv region on Monday as Russia’s attack on Ukraine continues. Wheat prices may fall in the Bangladesh market as after a stalemate of around five months, the first ship loaded with wheat started its journey to Turkey from Ukraine via the Black Sea on Monday. Photo: Reuters

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Wheat prices could cool down in the local market

Combine harvesters harvest wheat in a field near the village of Tomylivka in the Kyiv region on Monday as Russia’s attack on Ukraine continues. Wheat prices may fall in the Bangladesh market as after a stalemate of around five months, the first ship loaded with wheat started its journey to Turkey from Ukraine via the Black Sea on Monday. Photo: Reuters

The price of wheat in Bangladesh could fall as its exports from Ukraine have resumed following an agreement with Russia.

Before the Russian-Ukrainian war, 40% of Bangladesh’s wheat imports came from the two countries.

After a stalemate of about five months, the first ship loaded with wheat began its journey to Turkey from Ukraine via the Black Sea on Monday.

Importers and wholesalers said wheat prices rose by 300 to 400 taka per maund (about 37 kilograms) after the start of the war and that India restricted wheat exports from February this year .

Before the conflict broke out in late February, Indian and Canadian wheat were selling for Tk 900 and Tk 1,100 per maund respectively.

According to Khatunganj wholesalers, yesterday’s prices were Tk 1,450 and Tk 2,100 respectively.

The traders said that the price of the product has remained normal over the past week.

However, at the end of July, the price of each variety decreased by 100 Tk following the agreement and price cuts in the international market.

“The domestic wheat market has not changed much despite the fall in prices on the international market and the recovery of exports from Ukraine due to the rise in the dollar exchange rate,” Abul Bashar Chowdhury told the daily. , president of the BSM group. Star.

“The LC bank was opened at the time of import at Tk 87 per dollar, but the dollar rate went from Tk 97 to Tk 106 per dollar when paying for shipments. So the price of the product did not have declined in accordance with the international market,” he said.

He said it would take a month to a month and a half for these products to arrive in the country if the letters of credit were open now. Then the supply of the product will increase and the price will decrease when the goods enter the market, he added.

According to the National Board of Revenue, Bangladesh imported a total of 14.66 lakh tons of wheat in the first eight months of the last fiscal year 2021-22 till February before the war.

During this period, about 40% of imported wheat came from Russia and Ukraine.

According to importers, purchases of wheat and wheat products have increased by 10-15% almost every year for the past decade due to increased demand in the domestic market.

But over the past two years, the import of the goods has declined due to a drop in demand for goods and a rise in world prices during the pandemic.

The country’s annual wheat demand is between 70 and 75 lakh tonnes, 85% of which is met by imports, according to data from the Bangladesh Bureau of Statistics and the Department of Agricultural Extension.

In Dhaka, retail prices for unpackaged wheat flour fell by 3.5% to Tk 40-42 per kilogram yesterday from Tk 40-45 per kilogram a month ago.

Prices for packaged wheat flour fell 6.6% to Tk 48-50 per kilogram yesterday from a month ago, according to price data compiled by the Trading Corporation of Bangladesh.