Image: Reuters Berita 24 English - According to government and trade officials speaking to Reuters on Wednesday, Bangladesh is attempting to...
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| Image: Reuters |
Berita 24 English - According to government and trade officials speaking to Reuters on Wednesday, Bangladesh is attempting to secure wheat supplies from Russia through a government-to-government agreement after its main supplier India stopped wheat exports last month to control local prices.
According to industry officials, Dhaka may be able to meet its needs below the high worldwide prices thanks to the supply agreement with Russia, the world's largest exporter of wheat.
According to a senior official with the Bangladeshi food ministry, Bangladesh and Russia will conduct a virtual conference on Thursday to finalise the agreement.
The official, who wished to remain unnamed, stated that "we will initially seek at least 200,000 tonnes of wheat from Russia."
An inquiry for comment was not immediately answered by the Ministry of Food.
More than two thirds of the 7 million tonnes of wheat imported by Bangladesh last year came from India.
Bangladesh attempted to obtain supplies through international auctions following India's export embargo but had to cancel them due to exorbitant costs.
According to a Mumbai-based dealer with a multinational trading company, Bangladesh was paying less than $400 a tonne on a cost and freight basis for Indian wheat before the ban, but other suppliers began quoting prices above $460, which drove up local prices in Bangladesh.
With inflation reaching an eight-year high in May and the nation's wheat supplies falling to their lowest level in three years, 166,000 tonnes, the Bangladeshi government is fighting to control skyrocketing commodities prices.
"There are numerous nations that can provide wheat to Bangladesh, but the main concern is cost. Russian pricing can be lower than those worldwide "said a dealer with a multinational trading company situated in New Delhi.
Given the Western sanctions on Moscow, however, paying for Russian wheat would be difficult for Dhaka.
"In the meeting, every topic, including money, will be covered. We'll see "a representative of government said.
According to the New-Delhi-based merchant, Bangladesh would initially acquire a limited quantity of Russian wheat and would increase purchases provided "all goes smoothly on the organising shipments and payment's front."
