DHAKA, BANGLADESH — Bangladesh, which has been among the largest buyers of Russian wheat in recent years, has again turned to the country for the commodity, agreeing to buy 100,000 tonnes of wheat in an inter-state deal, according to Reuters.
Citing officials familiar with the transaction, Reuters said Bangladesh will pay $267.30 a tonne for the wheat, which will be supplied by Russian state firm Prodintorg. The first batch of wheat is expected to arrive in the first week of August, Reuters noted.
Bangladesh purchased 1.9 million tonnes of Russian wheat during the July 2018-May 2019 period, Reuters said, including 200,000 tonnes of wheat in an inter-state deal in 2017 after Dhaka rejected three cargos of Russian wheat totaling 150,000 tonnes due to quality concerns.
The country has turned to Russia as a source of wheat as supply from India has dried up due to that country using the grain to fulfil its growing domestic demand.
“I think Russia wants to cement its hold on the Bangladesh wheat market, which is certainly underlined by the state involvement in this deal,” one European trader told Reuters. “Bangladesh is an important market in Asia and a lot of suppliers want it.”