17-Nov-2013

Wheat imports doubled in the first four months of the current fiscal year from a year ago on the back of lower prices in the international market.

Between July and October, some 10.17 lakh tonnes of wheat arrived, in contrast to 4.99 lakh tonnes during the same period of fiscal 2012-13, according to data from the food ministry. Over the last one year, prices of wheat have been on the downturn globally due to increased production.

The ‘Soft Red Winter’ variety slumped to $257.7 per tonne in the third quarter of the year from $297 in the first quarter, while the ‘Hard Red Winter’ dropped to $305 a tonne from $321, according to World Bank Commo-dities Price Data.

The sliding prices encouraged all to import in higher quantities, said Mohammed Saiful Alam, chairman of the Chittagong-based S Alam Group, which imported 2 lakh tonnes of wheat since July.

Asif Iqbal, executive director of Meghna Group of Industries, said higher imports had caused a supply overflow in the market, forcing importers to sell at lower prices to pay off bank loans and other liabilities.

The retail prices, however, did not fall in line with the prices at which the importers had sold to the traders, who are releasing the grain slowly to the market to keep the prices high, Alam said.

Asked, Wazed Ali, owner of Lakhya Flour Industry at Narayanganj, said: “Don’t traders stock in godowns if the market demand is lower than the supply?”
The wholesale price of flour currently stands at Tk 27 per kg, in contrast to Tk 35-40 in January.

Ali said wheat imports would not rise further as importers who have incurred losses earlier have stopped importing.

Badrul Hasan, director of procurement of Directorate General of Food, expects this fiscal year’s wheat imports to be around 30 lakh tonnes, up from 18.61 lakh tonnes in fiscal 2012-13.

Of the total wheat imports, the private sector accounts for 67.5 percent and the government the rest.

Source:- thedailystar.net