Domestic supply lowers wheat prices in Dhaka, Chattogram

Wheat prices have fallen by Tk 150-200 per maund in Chattogram markets compared to last week as the local version of the cereal crop has arrived.

The Indian wheat was sold at Tk 1,450 per maund and the Australian one at Tk 1,980 at Khatunganj, a wholesale hub of essential commodities, on Monday. Local wheat, on the other hand, was sold for Tk 1,450 per maund.

“This is the first time wheat prices have dropped since India announced the wheat export ban,” said Abu Saeed Chowdhury, owner of JB Food flour mill in Khatunganj.

He said the volatile situation created by the export ban improved a bit due to the availability of local wheat. “Some millers and traders are ‍selling and buying local wheat, which was rare before.”

Government officials said prices went down because supply was good.

“The overall situation is now stable in terms of price and supply,” said Zahirul Islam Khan, regional food controller at the food department in Chattogram.

“Arrangements have been made to supply the wheat imported by the department to the market,” he added.

Wheat prices also decreased by Tk 100-150 per maund in the wholesale markets of Dhaka and Narayanganj. Imported wheat was sold at Tk 1,400 per maund and the local one at Tk 1,350.

Traders said wheat prices would go down further if dollar prices fell.

Some traders who had bought wheat at higher prices were worried that they would incur losses as prices were falling, said Md Mahfuz, managing director of Afzal Flour Mills.

Flour prices in the wholesale markets also fell due to reduced wheat prices. A 50kg flour sack was sold at Tk 1,800, down from Tk 2,050 two weeks ago.

Besides, a 50kg refined flour sack was sold at Tk 2,750, down from Tk 3,050 two weeks ago.

Bangladesh’s current average annual demand for wheat is 75 lakh tonnes while only 11 lakh tonnes are locally produced. Imported wheat dominates Chattogram markets almost round the year as it is a port city. Wheat and flour prices kept rising since India’s commerce ministry banned wheat exports in the second week of this month. On Monday, mill owners in Khatunganj bought wheat at Tk 1,600-1650 per maund from suppliers ‍and importers.

Chattogram port officials said two ships had arrived carrying more than one lakh tonnes of wheat from India. The wheat will hopefully be added to the country’s supply network by tomorrow.

In the first 10 months of the current financial year, 55.46 lakh tonnes of wheat arrived in the country. More than four lakh tonnes arrived at the Chattogram port this month.