An informed source said that Bangladesh is looking to buy wheat from India to meet domestic demand, and traders expect the country to import large quantities, amid global supply disruptions due to the ongoing conflict in West Asia.
The person mentioned above, who declined to reveal his name, said that traders from both countries are “engaged” in negotiations to conclude deals.
India, the world’s second-largest producer, lifted the export ban on February 13, allowing 2.5 million tons of grains to be shipped abroad and an additional 500,000 tons of wheat-based products, such as semolina or sooji. A month ago, the government allowed the export of 500,000 tons of wheat flour.
An official statement at the time stated that the quantities allowed to be sold abroad aim to maintain market stability and improve farmers’ returns. Exports will also release stocks amid a glut due to last year’s strong monsoon.
Another source said: “The General Directorate of Foreign Trade has begun examining and issuing licenses for the permitted wheat export quota.”
Traders say Indian wheat was more expensive compared to grains in other countries because of the federally fixed minimum rate, known as the minimum support price, making it less competitive.
However, disruption in fertilizer supplies has increased global demand for food, and Bangladeshi buyers are expected to buy the Indian variety to save on shipping costs, which have risen against the backdrop of the Iran war, said an executive at a Jaipur-based trading house, requesting anonymity.
Overall trade between the two countries took a hit after both imposed restrictions on border trade following the July 2024 uprising in the neighboring country that ousted the Sheikh Hasina-led government, amid cooling relations.
Bangladeshi Foreign Minister Khalilur Rahman is scheduled to visit India on April 7, his first trip abroad since a government led by Prime Minister Tariq Rahman of the Bangladesh Nationalist Party took power after a landslide election victory in February.
Navneet Chitlangia, president of the Rotary Flour Mills Association of India, said that although the severe weather has damaged winter wheat, which is currently being harvested, the impact is not expected to be significant. “There has been damage to wheat but it is not extensive. Our preliminary surveys show that the production loss should not be more than 2%,” Chitlangia said.
Heavy rains and hailstorms fell last month on the fertile plains for wheat cultivation, which may lead to a loss of one million tons from the total production, which the government estimates at about 120 million tons.
The country’s total foodgrain production for 2025-26 is expected to rise 3% over last year to reach a record 348.65 million tonnes, according to the second of four quarterly estimates of the Agriculture Ministry released on March 10.
