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Bangladesh is making an attempt to safe wheat provides from Russia in a government-to-government deal after it is greatest provider India banned exports of the grain final month to include native costs, authorities and commerce officers instructed Reuters on Wednesday.
The availability take care of Russia, the world’s greatest wheat exporter, may assist Dhaka in assembly its wants beneath the elevated international costs , business officers stated.
Bangladesh is holding a digital assembly with Russia on Thursday to finalise the deal, stated a senior official with Bangladesh’s meals ministry.
“We’ll initially search not less than 200,000 tonnes of wheat from Russia,” stated the official, who declined to be named.
The Ministry of Meals didn’t instantly reply to a request for remark.
Bangladesh imports round 7 million tonnes of wheat and final yr extra than-two thirds of that got here from India.
After India’s export ban, Bangladesh tried to safe provides through worldwide tenders however has cancelled them due to excessive costs.
Bangladesh was paying lower than $400 per tonne on the associated fee and freight foundation for Indian wheat, however after the ban different suppliers began quoting above $460, which raised native costs in Bangladesh, stated a Mumbai-based seller with a worldwide buying and selling agency.
The Bangladesh authorities is struggling to include hovering commodity costs, with inflation at an eight-year excessive in Might, whereas the nation’s wheat shares hit their lowest in three years at 166,000 tonnes.
“There are numerous international locations who can provide wheat to Bangladesh, however key concern is value. Russia can provide low cost over international costs,” stated a New Delhi-based seller with a worldwide buying and selling agency.
However paying for Russian wheat can be a problem for Dhaka given Western sanctions on Moscow.
“All the problems, together with fee, can be mentioned within the assembly. Let’s have a look at,” the federal government official stated.
Bangladesh would initially purchase small quantity of Russian wheat and can enhance shopping for if “all goes properly on arranging shipments and fee’s entrance,” stated the New-Delhi based mostly seller.
Supply: Reuters
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