Shawdesh Desk:

Prices of both coarse and fine flour (atta and maida) have decreased on the wholesale and retail market in Bangladesh soon after Ukraine and Russia signed a deal last week to free up Ukrainian grain exports.

Ukraine and Russia negotiated the agreement to permit essential grain supplies to safely depart Black Sea ports, perhaps averting an impending global food crisis.

Wheat price on the international market has declined by 1.13 percent in a day, 8.63 percent in a month and was sold at $807.75 per bushel on July 29, according to the Trading Economics.

If the trade goes on smoothly, Ukraine will be able to sell over 20 million tonnes of grain reported to be accumulated in port silos since the war started on February 24, reported the Trading Economics.

Mehfuz Alam of Afzal Traders at Moulvibazar wholesale market told the Daily Sun that the booking rate of wheat has dropped on the international market and so prices of atta and maida started to fall on local market.

Wholesale price of atta (loose) fell to Tk 36 per kg on Saturday from Tk 40 per kg and that of maida (loose) to Tk 52 a kg from Tk 56 a kg, he said.

The prices of atta and maida will decrease further soon after new consignment arrives, the businessman added.

Retail price of loose atta has gone down by 3.64 percent and was sold at Tk 50-56 per kg on Saturday, according to the Trading Corporation of Bangladesh (TCB).

Retail price of loose maida fell by 2.54 percent in a week and was sold at Tk 55-60 per kg on the day.

However, prices of packet atta and maida have not come down yet on local market and the food products were sold at a high price.

According to Nasdaq, price of wheat was $934 per tonnes in the end of February, but it increased to $1,286 on March 7 and $1,277 on May 16.

Bangladesh’s imports from Russia and Ukraine came to a stop after the war started at the end of February. Then importers began to import wheat from India.

On May 13, the Indian Directorate General of Foreign Trade imposed a ban for an indefinite period on wheat exports to ensure smooth supply of the essential food grain to its domestic market.

The prices of both coarse and fine flour shot up in Bangladesh soon after the announcement of the ban.

Bangladesh produces around 1.1 million (11 lakh) tonnes of wheat annually against the demand for 7.5 million (75 lakh) tonnes.