US wheat deal costs millions in extra imports
Graphics: Agamir Somoy
Amid the Middle East crisis and global market uncertainty, Bangladesh is having to import wheat at high prices under a trade agreement signed with the US.
Purchasing wheat from the US costs $65-70 more per ton compared to open market or alternative sources. As a result, importing 8,00,000 tons of wheat in the 2026-27 fiscal year could result in an additional expenditure of at least $52-56 million, which in Bangladeshi currency is around Tk 624-672 crore.
Comparing this with international market prices, officials said despite having the opportunity to buy wheat at lower prices through open tenders, higher-priced US wheat must be purchased due to contractual obligations.
Even when compared to the lowest quoted price in a recent open tender, the additional expenditure for 8,00,000 tons stands at least Tk 327 crore.
The trade agreement between Bangladesh and the US was signed on 9 February. Prior to this, the Ministry of Food signed a five-year Memorandum of Understanding (MoU) with US Wheat Associates, with Singapore-based firm Agrocorp International acting as a mediator.
Following that agreement, similar to the 2025-26 fiscal year, there is an obligation to purchase 8,00,000 tons of wheat from the US as well. According to international market data, the Free-on-Board (FOB) price of wheat from Russia and the Black Sea region ranges between $220-240 per ton.
Including transportation, the cost to reach Bangladesh comes to around $270-290 per ton. In contrast, the price of US benchmark Hard Red Winter wheat is more than $270-310 per ton. Added high shipping freight due to distance, insurance, and long transit costs bring the price of US wheat upon arrival in Bangladesh to around $330-360 per ton.
While it takes about 15 days for wheat from Russia or the Black Sea region to reach Bangladesh, shipments from the US take nearly 55 days to arrive, which also increases transportation costs.
Agricultural Economist Jahangir Alam said, “Through this agreement, we have essentially become hostages to the US. There is no opportunity to question the price of wheat here; whatever price they set; Bangladesh is forced to buy at that exact price.”
He added, “This is not an agreement of commercial benefit, but rather a major political burden. Keeping Bangladesh under international pressure was the main objective of this agreement. This is an extremely unequal agreement imposed on a weak country, which can in no way be acceptable.”
