Bangladesh's grain imports are likely to drop to 1.4 million tonnes in the fiscal year beginning in July from nearly 2.5 million tonnes in the current fiscal year, a senior food official said on Wednesday. The government will import 1 million tonnes of wheat and 400,000 tonnes of rice in the 2011/12 fiscal year to ensure food security, an official at the Directorate General of Food said.
Another 150,000 tonnes of wheat and rice is expected to come as foreign grants. In addition, the government will procure 1.4 million tonnes of rice locally. "It is an initial target. It may be altered depending on the food situation," the official, who declined to be named, said.
So far this fiscal year, the government has imported 888,000 tonnes of rice and finalised deals for 522,000 tonnes. It has also imported 700,000 tonnes of wheat and finalised deals for another 180,000 tonnes. 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 will drop as the overall food situation in Bangladesh is returning to normal on the back of hefty imports by the government, though domestic prices of the staples are still high. This week the government signed a memorandum with Vietnam to buy 1 million tonnes of rice each year to ensure supplies of the staple.
Analysts said Bangladesh would be a major grain importer again if the government fails to procure enough rice locally, like this fiscal year, or natural calamities such as floods and drought cut output. Bangladesh's government, which is not only struggling with high food inflation at nearly 12 percent but also footing a massive subsidy bill for grain, diesel and fertiliser, hopes for some relief on the slide in grain imports. Food security is a major concern for the government as poverty is still widespread.