DHAKA: Bangladesh will sign a memorandum of understanding with Ukraine to import wheat as part of efforts to secure supplies of the staple, a senior food ministry official said on Monday.
"Most probably, we will sign a state-to-state deal on Tuesday to import the wheat as per our requirement, at price agreed between the two countries," the official said.
An official team from Ukraine is due to arrive in Dhaka on Monday on a three-day visit, he added.
The government turned to the wheat market recently, after buying rice in bulk in the fiscal year ended June 30, as Russia and Ukraine have resumed strong exports and prices have fallen.
Bangladesh, which buys around 3 million tonnes of wheat a year mostly via private traders, is likely to lead the way in Asia in switching to Black Sea supplies.
The government had previously received an offer from Ukraine to export 100,000 tonnes of wheat to the South Asian country at $365 a tonne, which Bangladeshi officials said was high.
In two recent tenders, the state grains buyer received low offers of $309.11 a tonne and $305 a tonne, both including CIF liner out.
Another tender for 50,000 tonnes of wheat is due to open on Tuesday.
Bangladesh's imports of wheat and rice surged to 5.3 million tonnes in the last fiscal year, from 3 million the year before, putting additional pressure on its balance of payments.
Rice and wheat imports are likely to drop in the current fiscal year, but food officials and analysts said Bangladesh could emerge as a major buyer again if prices of the staples remain high in the domestic market or if any natural disasters cut output.
Copyright Reuters, 2011
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