Bangladesh's grain imports to hit 5.5 million tonnes

Bangladesh's imports of wheat and rice are set to reach a record 5.5 million tonnes in the year to June, against 3.0 million tonnes a year ago, a senior food official said on Friday. The previous highest import of grains was in 1998/99 when Bangladesh bought 5.4 million tonnes following a devastating flood that destroyed crops in the field.
Around 5.2 million tonnes of grain have been imported so far in the 2010/11 fiscal year and 300,000 tonnes more are on the way, the official told Reuters. The government purchased 1.1 million tonnes of rice and 900,000 tonnes of wheat and around 300,000 tonnes are arriving this month, he added. The private sector bought 2.9 million tonnes of wheat and 300,000 tonnes of rice.
Although Bangladesh is the world's fourth-biggest rice producer, with average annual output of 33 million tonnes, it has emerged as a major importer this year, including several government-to-government deals with Vietnam and Thailand, the world's top two exporters of the grain. Rice demand from Bangladesh has helped support Asia rice prices.
Grain imports have reached the highest ever level mainly due to a sharp rise in rice purchases as part of efforts by the government to head off domestic price rises, the official said. The government will import 700,000-800,000 tonnes of rice and 1 million tonnes of wheat in the coming fiscal year, beginning in July.
"This is a tentative target. The figures may change depending on the food situation," the official said. The government has already turned to international markets to ensure supplies of the staples for the coming fiscal year, with one tender for 50,000 tonnes of parboiled rice due to open on June 6. The government plans to procure 1.1 million tonnes of rice locally in the next fiscal year. Procurement of 600,000 tonnes would start from Sunday at 29 taka ($0.39) a kg.
It has 750,000 tonnes of wheat and rice in reserves. The Bangladesh government is not only struggling with high food inflation at more than 14 percent but also footing a massive subsidy bill for grain, fuel and fertiliser. Nearly 40 percent of Bangladesh's more than 150 million people live on less than $1.25 a day and spend most of their money on food. This has prompted the opposition deploy food as an issue as it campaigns for a mid-term election.