Russia wants to export milling wheat to Bangladesh under G2G
Russia has proposed exporting 0.5 million tonnes of milling wheat to Bangladesh under a G2G deal via Prodintorg, its state-run supplier. Bangladesh is reviewing the proposal, though sanctions and banking issues may complicate it. Meanwhile, Dhaka has signed a separate agreement with the US to import 0.7 million tonnes of wheat over five years.
US sanction-hit Russia wants to export 0.5 million tonnes of milling wheat to Bangladesh under a government-to-government (G2G) arrangement, sources say.
Prodintorg, a subordinate organisation under the agriculture ministry of the Russian Federation with 100 per cent state participation, sent a proposal in this regard a few months back.
The foreign affairs ministry recently forwarded the proposal to the food ministry.
In the proposal, Prodintorg says it has many years of experience in supplying wheat to Bangladesh.
“We would like to express our readiness to carry out a new delivery of up to 0.5 million tonnes of Russian milling wheat.”
It suggested discussing the details of the deal during negotiations.
In June 2023, the Russian embassy in Bangladesh expressed interest in expanding cooperation through a G2G supply of lentil, sunflower oil, pea, and chickpea at competitive prices.
Prodintorg, which has been Bangladesh’s sole G2G supplier of agricultural products and fertilisers since 2013, boasts supplying over 1.3 million tonnes of potash fertiliser and 1.5 million tonnes of milling wheat since the partnership began.
Preferring anonymity, a Bangladeshi official said apart from Western sanctions, the lack of direct banking transactions between Dhaka and Moscow could pose challenges to the proposed deal’s implementation.
The food ministry has not made a decision on the proposal yet.
On the other hand, Bangladesh recently inked a deal with the US to import 0.7 million tonnes of wheat within the next five years to secure a fairer tariff rate.
Of the volume, in the first year, Bangladesh will import 0.22 million tonnes of wheat.
The US administration had earlier imposed a 35 per cent reciprocal tariff on Bangladesh.
But it recently cut the tariff to 20 per cent.
Bangladesh previously relied on Russia and Ukraine for critical food imports, particularly wheat, sunflower oil, and fertiliser.
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Source : The Financial Express
