Imports of Indian wheat into Bangladesh begin as global market prices rise

New Delhi. Wheat export shipments from Russia and Ukraine have been severely disrupted due to the insecurity of the Black Sea shipping route, complicating the supply and availability of this vital food grain in the international market and driving up prices. In response, importers in Bangladesh have started purchasing lower-priced wheat from India. The Government of India has completely deregulated wheat exports.

Trade analysts state that India possesses a sufficient exportable surplus of wheat to easily meet Bangladesh's demand and requirements. Transporting wheat from India to Bangladesh involves lower costs and less time; the grain can be shipped via road, rail, and waterways.

According to informed sources, contracts for the import of over 200,000 tonnes of Indian wheat have been signed by Bangladeshi importers since late August. This is considered the first major wheat sales deal since 2022.

Shipments of agricultural products, including wheat, from the Black Sea region have virtually stalled due to the intense ongoing conflict between Russia and Ukraine. Russia is the world's leading wheat exporter, while Ukraine also exports significant quantities. Disruptions to shipments are prompting importers in Asia, Africa, and Europe to turn to alternative suppliers, a shift from which India is expected to benefit significantly.

Bangladesh requires over 7 million tonnes of wheat imports annually. Prior to the central government imposing an export ban in May 2022, India met approximately 70 percent of Bangladesh's wheat import needs. However, following the halt in Indian exports, Bangladesh began sourcing large quantities of wheat from Argentina, Canada, Australia, Russia, and Ukraine. About 40 percent of its wheat imports were sourced from the Black Sea region; this supply chain is now facing disruptions, creating an opportunity for India.