Large companies reap big as global wheat prices plunge
Bangladesh’s consumers are not benefiting from the global drop in wheat prices, as local importers and millers have raised flour costs. Coarse flour (atta) now sells at Tk 55–70/kg and fine flour (maida) at Tk 70–78/kg, despite global wheat hitting a five-year low of $190/tonne. Experts blame weak government oversight and call for intervention by the Tariff, Competition, and Consumer Rights agencies.
Bangladeshi consumers are hardly getting any benefits from the global plunge in wheat prices, as big local importers-cum-millers are making huge profits.
Prices of flour and flour-made items even have increased in the country during the last three months, showing a poor monitoring by the government agencies concerned, said experts.
Price of coarse flour or atta surged to Tk 55-70 a kg from Tk 45-60 a kg, while that of finer flour or maida rose to Tk 70-78 a kg from Tk 55-68 a kg, according to grocers.
Flour millers-cum-importers raised the flour prices in the name of dollar market volatility, although the global wheat prices went down to a five-year low.
The current global prices are 12-15 per cent lower than those of a year ago, according to two global portals – tradeeconomics.com and markets.businessinsider.com. According to the portals, wheat prices even decreased to US $190 a tonne in August, a five-year low.
Shahriar Hossain, a grocer in the city’s Mohammadpur area, said the price of per 50-kg sack of loose flour has increased by Tk 250-300 in the last two and a half weeks, raising the prices of both atta and maida.
The packet flour prices of most of the big companies have also increased by Tk 5.0-10 a kg during the period. The prices of confectionery and bakery items, made of flour, have also increased by 6.0-10 per cent, according to traders.
The state-run Trading Corporation of Bangladesh (TCB) also confirmed an 11 per cent increase in flour prices in a year.
Asked, City Group Director Biswajit Saha said the government has imposed AIT and increased turnover tax, which have forced the companies to readjust flour prices to some extent.
Value chain expert Prof Golam Hafeez Kennedy said global wheat prices have been showing a downtrend and dropped by 12-15 per cent in a year.
The local wheat importers and millers cannot give the excuse of dollar price volatility, as it appreciated by hardly 2.0-3.0 per cent during the period.
He also said the country’s wheat import was 6.2 million tonnes in fiscal year 2024-25, and local production was 1.0 million tonnes, which show that its supply is adequate.
Consumers Association of Bangladesh (CAB) vice president S M Nazer Hossain said the Tariff Commission, the Competition Commission, and the Directorate of National Consumer Rights Protection (DNCRP) should look into the matter seriously.
These agencies could seek information on wheat import, processing and retail sales from the traders and millers, which have absolute hold over the market, to bring a check and balance, he added.
To Read more about Wheat News continue reading Agriinsite.com
Source : The Financial Express
