Government Approves Tk 1,052 Crore Wheat Imports

The government has approved the import of 270,000 tonnes of wheat from the United States and Singapore at a combined cost of Tk 1,052.41 crore, as part of its ongoing efforts to maintain adequate food grain reserves and ensure a stable domestic supply.

The decision was taken at a meeting of the Cabinet Committee on Government Purchase held on Wednesday at the Cabinet Division conference room in the Secretariat. The meeting was chaired by Finance Minister Amir Khasru Mahmud Chowdhury.

According to the Ministry of Finance, the procurement proposals were submitted by the Ministry of Food and received approval under two separate import arrangements.

The larger of the two purchases involves the import of 220,000 tonnes of wheat from the United States under a government-to-government (G2G) agreement. The wheat will be purchased at a price of US$322 per tonne, bringing the total value of the contract to Tk 869.56 crore.

Officials said the G2G procurement mechanism is commonly used for strategic food imports, as it allows governments to secure essential commodities directly from another country while reducing uncertainties associated with commercial market fluctuations. Such arrangements are often intended to ensure timely delivery and reliable supply, particularly when global food markets experience volatility.

In addition to the US purchase, the committee also approved the import of 50,000 tonnes of wheat from Singapore-based Agrocorp International Pte Ltd through an international open tender process.

The procurement will cost Tk 182.85 crore, with the wheat priced at US$297.92 per tonne. The lower unit price reflects the outcome of the competitive international bidding process, under which suppliers submit offers and contracts are awarded based on predetermined evaluation criteria.

Together, the two procurement proposals amount to a total import of 270,000 tonnes of wheat, with an overall expenditure of Tk 1,052.41 crore.

The imports form part of the government’s broader strategy to maintain sufficient public food stocks, which play a crucial role in supporting food security, stabilising market prices and meeting demand under various social safety net programmes. Wheat is one of the country’s key imported food grains, supplementing domestic production to meet consumption needs.

Bangladesh relies heavily on imported wheat each year because local production is insufficient to satisfy national demand. The grain is widely consumed directly as flour and is also used extensively by the food processing industry in the production of bread, biscuits, noodles and other wheat-based products.

Government agencies regularly procure wheat from multiple international sources to replenish strategic reserves managed by the Directorate General of Food. These reserves are used for public food distribution programmes, emergency relief operations and market interventions when necessary.

International wheat prices have experienced periods of fluctuation in recent years due to changing global supply and demand conditions, adverse weather in major producing countries and disruptions to international trade. Against this backdrop, maintaining diversified sources of supply has become an important element of Bangladesh’s food procurement strategy.

The latest approvals indicate that the government is continuing to secure imports through both bilateral government agreements and competitive international tenders. Employing multiple procurement methods allows authorities to balance supply security with cost considerations while reducing dependence on any single sourcing mechanism.

Officials expect the newly approved wheat consignments to strengthen the country’s food grain reserves and support the uninterrupted distribution of wheat through government channels. Maintaining adequate stock levels is considered particularly important for ensuring market stability, responding to emergencies and implementing food assistance programmes throughout the year.

With the approval of the two procurement proposals, Bangladesh will import 220,000 tonnes of wheat from the United States under the G2G arrangement and a further 50,000 tonnes from Singapore-based Agrocorp International Pte Ltd through international competitive bidding, bringing the total approved purchase to 270,000 tonnes valued at Tk 1,052.41 crore.