Bangladesh has signed a deal to import 60,000 tonnes of wheat from Ukraine at $280 a tonne, including CIF liner out, a senior procurement official said on Wednesday. The price is sharply lower than its first inter-governmental agreement with Kiev in September, in which it purchased 100,000 tonnes of wheat at $320 a tonne.
"The price is set in line with declines in global wheat prices," Badrul Hasan, director for procurement at the Directorate General of Food, told Reuters, adding that the shipment would take place soon. Global wheat prices are on track for a third straight weekly drop, after having shed almost 18 percent last year. He also said the government would only import 200,000 tonnes of wheat from now till June due to satisfactory reserves.
The state grains buyer has said it would import a total of 900,000 tonnes of wheat in the 2011/12 fiscal year. It has so far purchased or finalised deals for 560,000 tonnes including the latest pact with Ukraine, the official said. Rice and wheat stocks at government inventories stand at more than 1.5 million tonnes, the highest level in a decade, boosted by the previous year's hefty imports and record rice crops.
The south Asian country, which buys 3.0 million-3.5 million tonnes of wheat annually to meet domestic demand, switched to cheaper Black Sea supplies after India banned exports in 2007 amid a global shortage. However, late last year India allowed exports of wheat and rice, and competitive prices prompted Bangladeshi traders to shift away from Black Sea suppliers.
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