2024-05-07 07:43:08
As a result of low production, it is not possible to procure wheat from the domestic market of the country. In 2023, the government has set a target of procurement of 1 lakh metric tonnes of wheat from the domestic market. But against this target it was not possible to collect wheat at that time. As a result, the wheat market is now almost entirely dependent on imports. As a result, the prices of wheat and flour have decreased significantly in the international market, but the prices of these two products are still high in the domestic market.
Sources from the Ministry of Agriculture have informed that, contrary to the country’s demand, a total of 6 lakh metric tons of wheat has already been purchased in the current fiscal year 2023-2024 through international open tenders, including 3 lakh metric tons from Russia and 3 lakh metric tons on G-to-G basis. On the other hand, 45 lakh 15 thousand metric tons of wheat has been imported till April 30 at the private level.
It is known that currently the demand for wheat in the country is 85-86 lakh metric tons. In contrast to this, wheat is produced only about 1.2 million metric tons every year and wheat import is 74-75 million metric tons by government and private sector. 10 percent of the demand is met by the production of the country.
According to sources, the production of wheat in the country has decreased compared to earlier, but in recent years, according to the target of the Ministry of Agriculture, the production of wheat is increasing little by little every year. In the last financial year 2022-2023, the target of wheat production in the country was 11 lakh 60 thousand metric tons. Against this, 11 lakh 70 thousand metric tons have been produced. In the current fiscal year 2023-2024, the wheat production target has been set at 12 lakh 28 thousand metric tons.
According to the sources of the Ministry of Food, according to the calculation of April 30, the government stock of wheat in the country is 3 lakh 52 thousand metric tons. No wheat was procured against the target of 1 lakh metric tonnes in the government level domestic wheat procurement drive last year (year 2023) due to unfavorable market prices.
According to sources, the price of wheat and flour in the domestic market has been rising most of the time due to increase in import dependence. According to food ministry calculations, retail price of wheat in domestic market in March 2020 was Tk 27 44 paise and open flour price was Tk 27 23 paise. In March of this year (year 2024), its price was 42 taka 50 paisa and 42 taka 89 paisa respectively.
According to the review of the international market price of wheat obtained from the Ministry of Food, in the last five years (March 2020-March 2024), the price of wheat was the highest in March 2022. At that time the FOB price of wheat per metric ton was – USA red soft $425, Ukraine wheat $438, Russia wheat $410, Argentina wheat $408 and Australia wheat price was $393. At that time, the price of wheat at the retail level in the country was 31 taka 46 paisa and the price of open flour was 34 taka 85 paisa.
As of March 2024, the FOB price per metric ton of wheat is – USA red soft $232, Ukraine wheat $197, Russia wheat $204, Argentina wheat $222 and Australia wheat $250. That is, currently the price of wheat in the international market is very low, but the price of wheat and flour in the domestic market is higher than in 2022.
It is known that before independence wheat was produced in the country as much as 1 lakh metric tons. It increased to 1 million metric tons in a decade after independence. In the last financial year 1998-1999, wheat production in the country was recorded, at that time 19 lakh 88 thousand metric tons of wheat was produced. But after that it was not possible to take the production of wheat to that level.