Govt to import 7 lakh tonnes of US wheat yearly

Bangladesh has decided to import 7 lakh tonnes of wheat annually from the US worth about $200 million as part of the government efforts to secure a lower tariff from the Trump administration on its exports.
The wheat will be imported over the next five years, according to the memorandum of understanding signed yesterday between the food ministry and the US Wheat Associates at the ministry's office.
The deal comes as the government continues negotiations with the US administration to reduce the 35 percent tariff on Bangladeshi goods, which is set to take effect from August 1 this year.
Currently, the government imports about 6 to 7 lakh tonnes of wheat annually from various countries to support its social safety net programmes and ration systems.
The government has allocated budget for 6 lakh tonnes of wheat imports this fiscal year. Last fiscal year, the government imported around 4.6 lakh tonnes.
Beyond public procurement, the private sector also imports a significant amount of wheat.
Last fiscal year, private imports amounted to 57.7 lakh tonnes, meaning the government will likely need to involve the private sector to meet the increased import target.
The government will procure high-quality grain at competitive prices, according to the statement.
In recent government purchases, wheat was priced at $270 per tonne. As per this rate, the planned imports would cost about $200 million.
The agreement will enhance trust and trade cooperation between the two countries, ultimately benefiting both nations, said Food Adviser Ali Imam Majumder.
Bangladesh currently exports over $8 billion worth of goods annually to the US, its single largest export market, while imports from the US stand at just over $2 billion.
Subsequently, US President Donald Trump imposed a 35 percent tariff on Bangladeshi goods -- significantly higher than the rates applied to Vietnam (20 percent) and Indonesia (19 percent), the country's main competitors on apparel export to the American market.
To help narrow the trade deficit, Bangladesh is also planning to purchase 14 Boeing aircraft from the US.
The negotiations with Boeing are at an advanced stage, although the delivery timeline depends on the company's production capacity, said Commerce Secretary Mahbubur Rahman last week.
The total value of the aircraft deal has not been disclosed yet.
"We are trying to reduce the trade gap between Bangladesh and the US by increasing imports from America," Rahman said, adding that his ministry has been consulting with business leaders from the crucial garment and pharmaceutical sectors as well as trade experts ahead of the negotiations.
Bangladeshi officials are preparing for a third round of talks in Washington next week with the view to sealing a reciprocal tariff agreement before the new rates take effect.
The government also plans to include private sector representatives in the upcoming talks, a move business has recently advocated for.
In addition to government-led purchases, private sector importers are being encouraged to source more goods such as soybeans from the US.
In April, Chief Adviser Muhammad Yunus wrote to Trump offering to increase imports of US cotton, wheat, LNG and soybeans.
A similar offer was made by Commerce Adviser Sk Bashir Uddin, who is leading the Bangladeshi delegation in the talks, to United States Trade Representative Jamieson Greer.
The MoU for wheat import was signed by Md Abul Hasanath Humayun Kabir, director general of the Directorate General of Food, and Joseph K Sowers, regional vice president of the US Wheat Associates.
US Ambassador to Bangladesh Tracey Ann Jacobson, Rahman, and other senior officials from both sides were present during the signing.
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