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No irregularities in wheat import from US: Food Ministry
The Ministry of Food has clarified that there have been no irregularities, overpricing, or special privileges in the import of wheat from the United States (US).
The ministry said that a recent report in a national daily titled "Bangladesh buys US wheat at higher price due to agreement" presented misleading information regarding the government-to-government (G2G) wheat import process, according to a press release.
The ministry noted that the report could create a wrong impression among readers, and therefore, accurate information needs to be highlighted.
According to the release, wheat is being imported under the G2G arrangement in accordance with the Memorandum of Understanding (MoU) signed between the Governments of Bangladesh and the United States.
In this process, an agreement was signed in the first phase to import 220,000 metric tons of wheat at US$ 302.75 per ton (CIF Liner Out). Subsequently, in the second phase under the same process, a contract was completed to procure an additional 220,000 metric tons of wheat at US$ 308 per ton (CIF Liner Out).
The news compared the CIF Liner Out price of US wheat (up to the silos of Chattogram and Mongla Directorate General of Food) with the FOB price of Russian wheat (up to the port in Russia).
This comparison is completely incorrect and misleading, because the CIF Liner Out price includes product transportation, insurance, unloading, and port-related costs, whereas the FOB price only accounts for costs up to the port.
According to actual data, the current FOB price of Russian wheat is about US$ 230 per metric ton, while the FOB price of US wheat is about US$ 232 per metric ton, a difference of only US$ 2.
Moreover, the CIF Liner Out price of Russian wheat is currently US$ 295-300 per metric ton, whereas the CIF Liner Out price of US wheat is US$ 308-310 per metric ton.
The ministry also stated that US wheat is of superior quality. While Russian wheat contains an average of 11 percent protein, US wheat contains 13.50 percent protein, making it nutritionally superior.
Considering the better quality, higher protein content, and international transportation costs, the slightly higher price of US wheat is reasonable and market-consistent.
The Ministry of Food firmly said that the entire G2G wheat import process from the United States has been carried out in a transparent, competitive manner, following government-approved international standards, reports BSS.