Wheat imports rise 116pc in six years
Wheat consumption in Bangladesh has a lot more than doubled in the past six years for changing food habits, increasing demand and exports of bakery products.
The grain's imports have seen a 116 per cent rise as its local cultivation didn't meet up with the demand, businesses and nutritionists said.
Moreover, wholegrains are gathering popularity for growing health awareness and rising rates of diabetes and obesity.
Among the grains, wheat tops rice with its higher protein and lower water content, said nutritionists.
Flour being cheaper than rice in addition has resulted in a trend over the past decade of bread being consumed in at least one of the day's meals.
"The amount of diabetic patients in the united states is increasing due to reduced physical activity," Prof Khaleda Islam of the Institute of Nutrition and Food Science of the University of Dhaka told The Daily Star.
"Moreover, both rich and poor persons suffer from obesity as a result of absence of proper diets. For those reasons, the demand for flour and flour-based food is increasing instead of rice."
Statistically, daily consumption of the cereal has truly gone up from 72 grammes in fiscal 2014-15 to 125 grammes at the moment, based on the Directorate General of Food alongside traders.
The country's gross annual demand stands at around 77 lakh tonnes, 85 % which is met through imports, as per the National Board of Revenue (NBR) and Department of Agricultural Extension (DAE).
As an essential commodity, wheat bears no import tariff. Some 67.34 lakh tonnes of it worth Tk 14,114 crore were brought over in the recently concluded fiscal 2019-20. It had been just 31 lakh tonnes in fiscal 2014-15, shows the NBR data.
Wheat involves Bangladesh from 16 countries, including Russia, Canada, Ukraine, India, the US, Cyprus, Italy, Australia, Argentina, Estonia and Belgium.
When it comes to its production, Bangladesh averaged in the number of 10 to 12 lakh tonnes during the past six years.
About 12 lakh tonnes were harvested from some 3.5 lakh hectares of land last fiscal year whereas 11.49 lakh tonnes from 3.29 lakh hectares of land in 2018-19, states the DAE.
"Several initiatives have been taken up to increase wheat production and cultivation of high yield varieties such BARI Gom-25 and BARI Gom-26," said Arif Mohammad Muzakker, additional deputy director of the DAE.
"There is also a project underway to build up salt tolerant wheat," he said.
The growing appetite is increasing competition among importers according to the NBR, with many new trading companies and factories recently relocating for a slice of the pie.
Leading importers for long include Shampa Flour Mills (City Group), Sonargaon Flour & Daal Mills (Meghna Band of Industries), Bashundhara Food and Beverage Industries, Ruby FOODS (BSM Group), Akij Flour Mills, Smile Food Product and Nabil Auto Flour Mills.
"The demand of wheat has doubled in the last few years but our production has not increased at that rate. Due to this fact, we have to depend on imported wheat," said Abul Bashar Chowdhury, chairman of BSM Group.
"The demand of wheat has increased as the cost of flour is leaner than rice. There's always a notable difference of Tk 10-12 between your prices of top quality flour and medium quality of rice," he said.
"Beside our food habits have changed because of increasing health awareness among the people. Moreover, the demand for bakery and junk food has increased which includes had a direct effect on wheat."
Demand for bakery products has increased many times previously one decade, according to many of the sector's investors.
A decade ago the quantity of large entrepreneurs in the sector was negligible however now a lot more than two dozen have emerged. Many of them are exporting various items, including biscuits and cakes.
Some $4.33 lakh worth bakery products were exported in 2015-16 but it has gone on to reach $21 crore last fiscal year, according to the Export Promotion Bureau.
"The bakery sector has changed drastically in the last decade," said Syed Nurul Islam, chairman of Well Group, among the country's leading producer of bakery products.
"In addition to the demand of the country, bakery products are also being exported to several countries. The demand of the country is increasing for a price of about 10-15 % every year. Positive progress can be being made in exports."
Facts and statistics data portal IndexMundi ranks Bangladesh seventh among wheat importers. Egypt topped the list with 1.30 crore tonnes last fiscal year followed by Indonesia with an gross annual 1 crore tonnes.
In consumption, Bangladesh comes 20th. China takes the crown with an annual 1.3 crore tonnes.
In production, Bangladesh placed 31st last financial year. Again China heads the leader board with 1.37 crore tonnes.
