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Bangladesh tries to secure wheat from Russia as India stops exports-sources

Black_cats

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Bangladesh tries to secure wheat from Russia as India stops exports-sources​

By Ruma Paul
and Rajendra Jadhav

2 minute read
Workers carry sacks of wheat for sifting at a grain mill on the outskirts of Ahmedabad

Workers carry sacks of wheat for sifting at a grain mill on the outskirts of Ahmedabad, India, May 16, 2022. REUTERS/Amit Dave

DHAKA/MUMBAI, June 22 (Reuters) - Bangladesh is trying to secure wheat supplies from Russia in a government-to-government deal after it's biggest supplier India banned exports of the grain last month to contain local prices, government and trade officials told Reuters on Wednesday.

The supply deal with Russia, the world's biggest wheat exporter, could help Dhaka in meeting its needs below the elevated global prices , industry officials said.

Bangladesh is holding a virtual meeting with Russia on Thursday to finalise the deal, said a senior official with Bangladesh's food ministry.

"We'll initially seek at least 200,000 tonnes of wheat from Russia," said the official, who declined to be named.

The Ministry of Food did not immediately respond to a request for comment.

Bangladesh imports around 7 million tonnes of wheat and last year more than-two thirds of that came from India.

After India's export ban, Bangladesh tried to secure supplies via international tenders but has cancelled them because of high prices.

Bangladesh was paying less than $400 per tonne on the cost and freight basis for Indian wheat, but after the ban other suppliers started quoting above $460, which raised local prices in Bangladesh, said a Mumbai-based dealer with a global trading firm.

The Bangladesh government is struggling to contain soaring commodity prices, with inflation at an eight-year high in May, while the country's wheat stocks hit their lowest in three years at 166,000 tonnes.

"There are many countries who can supply wheat to Bangladesh, but key issue is price. Russia can offer discount over global prices," said a New Delhi-based dealer with a global trading firm.

But paying for Russian wheat would be a challenge for Dhaka given Western sanctions on Moscow.

"All the issues, including payment, will be discussed in the meeting. Let's see," the government official said.

Bangladesh would initially buy small amount of Russian wheat and will increase buying if "all goes well on arranging shipments and payment's front," said the New-Delhi based dealer.

 

my2cents

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Bangladesh tries to secure wheat from Russia as India stops exports-sources​

By Ruma Paul
and Rajendra Jadhav

2 minute read
Workers carry sacks of wheat for sifting at a grain mill on the outskirts of Ahmedabad

Workers carry sacks of wheat for sifting at a grain mill on the outskirts of Ahmedabad, India, May 16, 2022. REUTERS/Amit Dave

DHAKA/MUMBAI, June 22 (Reuters) - Bangladesh is trying to secure wheat supplies from Russia in a government-to-government deal after it's biggest supplier India banned exports of the grain last month to contain local prices, government and trade officials told Reuters on Wednesday.

The supply deal with Russia, the world's biggest wheat exporter, could help Dhaka in meeting its needs below the elevated global prices , industry officials said.

Bangladesh is holding a virtual meeting with Russia on Thursday to finalise the deal, said a senior official with Bangladesh's food ministry.

"We'll initially seek at least 200,000 tonnes of wheat from Russia," said the official, who declined to be named.

The Ministry of Food did not immediately respond to a request for comment.

Bangladesh imports around 7 million tonnes of wheat and last year more than-two thirds of that came from India.

After India's export ban, Bangladesh tried to secure supplies via international tenders but has cancelled them because of high prices.

Bangladesh was paying less than $400 per tonne on the cost and freight basis for Indian wheat, but after the ban other suppliers started quoting above $460, which raised local prices in Bangladesh, said a Mumbai-based dealer with a global trading firm.

The Bangladesh government is struggling to contain soaring commodity prices, with inflation at an eight-year high in May, while the country's wheat stocks hit their lowest in three years at 166,000 tonnes.

"There are many countries who can supply wheat to Bangladesh, but key issue is price. Russia can offer discount over global prices," said a New Delhi-based dealer with a global trading firm.

But paying for Russian wheat would be a challenge for Dhaka given Western sanctions on Moscow.

"All the issues, including payment, will be discussed in the meeting. Let's see," the government official said.

Bangladesh would initially buy small amount of Russian wheat and will increase buying if "all goes well on arranging shipments and payment's front," said the New-Delhi based dealer.

You guys are always complaining about one sided trade in favor of India. Now you guys must be happy that India stopped wheat exports.
 

bluesky

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Bangladesh imports around 7 million tonnes of wheat and last year more than-two thirds of that came from India.

After India's export ban, Bangladesh tried to secure supplies via international tenders but has cancelled them because of high prices.
Why not India imports its and BD's needs together from Russia. And BD imports Indian wheat.

No bloody American sanction for BD because it buys Indian wheat. Let India takes a commission/ premium in this arrangement.
 

bluesky

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You want to setup india to be your fall guy.😉
Better India releases its wheat to BD as soon as possible. India then will have a shortfall and it buys from Russia.

The snake is killed, but the stick remains intact.

America will not sanction India but BD is weak. America likes to create problems for a weak country.
 

Sudarshan

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Better India releases its wheat to BD as soon as possible. India then will have a shortfall and it buys from Russia.

The snake is killed, but the stick remains intact.

America will not sanction India but BD is weak. America likes to create problems for a weak country.
As long as sleepy joe is the prez I doubt he’ll sanction anyone else other than the usual “bad guys” Russia, China, NoKo and Iran.
 

bluesky

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As long as sleepy joe is the prez I doubt he’ll sanction anyone else other than the usual “bad guys” Russia, China, NoKo and Iran.
Yes, Biden is a gentleman. But, the US administration is not run by Biden alone. BD and India should secretly join hands and India should purchase Russian wheat to make up its exports to BD.

However, I am worried about our FM Alga Momen. He may himself blow the whistle without knowing what he is doing.
 

Protest_again

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Yes, Biden is a gentleman. But, the US administration is not run by Biden alone. BD and India should secretly join hands and India should purchase Russian wheat to make up its exports to BD.

However, I am worried about our FM Alga Momen. He may himself blow the whistle without knowing what he is doing.
India can't do it either with respect to Wheat. Jaisankar has been selling to the world that purchasing oil from russia is out of necessity given the high prices in the market and non availability locally. How will he sell it w.r.t Wheat? It would be like sneering at the west, who are our allies.
 

UKBengali

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BD should just go ahead and import from Russia directly.

Dare them to sanction BD.

Their economies are literally falling apart and they do not want to take out the 2nd largest garment supplier on the planet right now. There is a limit to how stupid western leaders are.
 

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