February 22, 2011

 

Bangladeshi wheat import cost quadruples in nine years

 

 

Wheat import cost in Bangladesh has risen more than four times in less than a decade on a stable consumption growth and soaring prices in the international market, officials stated Sunday (Feb 20).

 

The country imported 3.1 million tonnes of wheat at a cost of US$761 million in the 2009-10 fiscal year, up from US$171 million in the 2001-2 fiscal year, a high official at the department of food said.

 

The official said the cost could soar past a billion dollar mark in the current financial year as global price of wheat has hit US$341.62 dollars last week - the highest mark in the past twelve months.

 

The retail price of the food grain in the local market jumped 45% in the eight months to February - the second highest in the world, according to New York-based Food Market Watch.

 

"Wheat consumption has been growing steadily over the past few years as a lot of people now eat bread twice a day and factory-made bread and biscuits have gained popularity even in rural towns," another official said.

 

Officials said demand crossed official forecast of 3.5 million by half a million tonnes last year. The country produced 0.9 million tonnes of wheat in 2009-10 fiscal year and the official import projection was 2.6 million tonnes.

 

Experts said cost of wheat import would continue to grow with the change of people's food habit and decline in dedicated farm land for wheat crop.

 

Local wheat production has been declining steadily over the past one decade after hitting a record high of 1.9 million tonnes in 1997-98.

 

In the current fiscal year the Agriculture Extension Department (DAE) has set a target to produce 1.16 million tonnes of wheat on 415,000 hectares of land. But officials are skeptical whether the target would be achieved.

 

Last year 958,157 tonnes of wheat was grown on 348,000 hectares of land, according to the DAE.

 

"We should popularise wheat farming in the country in view of soaring cost of grain import. The country cannot afford spending more than a billion dollar just to import wheat," the food department official said.

 

Rezaul Karim Siddique, an agriculture expert, said wheat production is losing out to corn - thanks largely to a "package of support" from corporate houses and for-profit charities.

 

"Private poultry farms, seed importers and leading non-government organisations have been promoting corn farming aggressively for years. By contrast, government's support to wheat farming is comparatively low," he said.

 

He said although corn farming has been blamed for large-scale soil contamination and degrading soil fertility, corporate promotion has made it one of the most preferred crops for the farmers in north-western districts.

 

"The government should take up the cause of wheat because of the high import cost and growing popularity of bread among the country's swelling urban population. Wheat farming also does not affect soil fertility," he added.

 

A DAE official told the FE corn is being grown on 0.24 million hectares of land across the country. "Formerly, the whole area was dedicated to wheat farming," he said.Published by HT Syndication with permission from The Financial Express.