Bangladesh to buy 50,000t wheat from Russia

Trading house Agrocorp secured a tender to supply 50,000 tonnes of wheat to Bangladesh after submitting the lowest offer of $294.95 a tonne, including CIF liner out, two officials with the state grains buyer said on Tuesday.

Three others competed for the tender from the Directorate General of Food, Bangladesh's grains purchasing agency, in which wheat with 12.5 per cent protein content was sought for shipment 40 days after contract signing.

Wheat from Russia is expected to be supplied by Agrocorp, one of the officials said.

"Bangladesh seems to be making faster decisions in its wheat tenders, which will be welcomed by the market," one European trader said. "Participation by international trading houses in Bangladesh's tenders is still low compared with many other importers."

A report from the United Nations Food and Agriculture Organisation (FAO) in December estimated Bangladesh’s wheat import requirements in the current 2018/19 season at a record of about 6 million tonnes. This would be 34 per cent above the previous five-year average after steady increases since 2012/13.

The strong demand for wheat reflects a shift in consumers’ diet preferences towards bread, as well as increased use of wheat as a substitute for more expensive rice, the FAO said.

Bangladesh made no purchase in a previous international tender to import 50,000 tonnes of wheat because the lowest bidder did not agree to a time extension amid rising global prices, the state grains agency said on 4 February.

Another tender for a similar quantity of wheat from the state grains buyer is due to open on 28 February.