Bangladesh importers want India to cut wheat prices

Bangladesh's wheat importers asked India on Tuesday to cut wheat prices, allowing them to buy more of the grain from their neighbour's bulging stockpiles. "The price of wheat in India is much higher than in the international market," said K.A. Mannan, a leading food importer.
Indian wheat was priced at $265 per tonne compared with $190 to $200 in Ukraine, $215-$220 in Russia and $230 per tonne in Kazakhstan, he said. Tipu Sultan, another food importer, expressed similar views. "If India does not cut the price to at least the level of international markets why should we import from that country?" he told Reuters.
"Last year we imported 2.6 million tonnes of wheat at a high price and now we are in trouble," Mannan, who is also managing director of MAB Company Foods Limited, told Reuters. Bangladesh produces up to 1 million tonnes of wheat against consumption of up to 3.5 million tonnes, officials said. "But the demand for wheat for this year would be lower as the country had bumper rice production, meaning less pressure on wheat," Mannan said.
Apart from the private sector, the Bangladesh government has no plans to import wheat at the moment. "We have no plan at the government level to import wheat immediately," said Pius Costa, the country's director-general of food. India recently said it would allow 900,000 tonnes of wheat exports by state-run firms and 650,000 tonnes of wheat products by private trade as monsoon rains revived after a dry spell.
The Indian government rejected demands for an export subsidy, however, making shipments viable only to neighbouring Bangladesh, traders said. "The price does not favour exports without subsidy. Export is possible only to neighbouring Bangladesh, not beyond," said a trader with an international firm based in the Indian financial capital, Mumbai.
India has accumulated a huge surplus of wheat after banning exports two years ago. Soaring stocks after a bumper harvest encouraged the government to say earlier this year that exports would eventually be allowed.