Bangladesh wheat imports arriving at Chittagong port as foodgrain demand rises

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Bangladesh Wheat Imports Surging 42% Signals Bullish Demand Shift

Bangladesh Wheat Imports Hit Record Pace in H1 2025-26

Bangladesh wheat imports reached 4.2 million tonnes as of December 31, 2025, marking a 42% increase compared with the same period in 2024. The sharp uptick reflects a coordinated effort between the private and public sectors to rebuild buffer stocks, address food inflation and strengthen the country's food security framework.

The private sector has been the primary driver of the foodgrain import surge, purchasing 3.25 million tonnes of wheat during the first half of the 2025-26 marketing year. This represents a 31% increase from the 2.47 million tonnes procured a year earlier. Government imports, by contrast, declined by 175,000 tonnes to 290,000 tonnes, indicating a deliberate policy shift toward private trade facilitation.

The marketing year for Bangladesh foodgrains began in July 2025, and the pace of imports in the opening half suggests that full-year volumes could set a new benchmark for the South Asian nation.

Shifting Consumption Patterns Fuel Wheat Demand

Several structural factors are converging to push wheat demand higher in Bangladesh. Rising domestic rice prices have prompted consumers to substitute with wheat-based products, a trend that is accelerating as food habits evolve across urban and semi-urban regions. Wheat-based items, including bread, noodles and other processed foods, are gaining a larger share of household food baskets.

Global wheat prices ruling at lower levels have further incentivized imports, making it economically viable for both private traders and government agencies to increase procurement. The favourable international price environment has provided a cost advantage that Dhaka has moved quickly to exploit.

The USDA wheat consumption estimate for Bangladesh places total demand at 8 million tonnes for the current marketing year. Of this, food, seed and industrial consumption is estimated at 7.7 million tonnes, underscoring the scale of the country's reliance on imported supplies to bridge the gap between domestic production and consumption.

Rice Demand in Bangladesh Drives Five-Fold Import Increase

Rice demand in Bangladesh remains robust despite the country being the world's third-largest producer. Imports of rice surged over five times to 650,000 tonnes in the first half of the 2025-26 marketing year, a notable escalation that reflects the widening consumption-production gap.

The USDA's Foreign Agricultural Service (FAS) projects total rice consumption in Bangladesh at 38.5 million tonnes for the current year. Domestic production is expected to rise to 37.7 million tonnes on higher acreage, but this remains insufficient to meet the full consumption requirement. Dhaka will need to import at least 1 million tonnes of parboiled rice, its staple variety, to cover the shortfall.

The Bangladesh government has floated at least 10 tenders of 50,000 tonnes each to secure public sector rice supplies, and the private sector is expected to procure an additional 750,000 tonnes from international markets. Elevated domestic prices have been a key trigger for these procurement efforts.

Feed Sector Adds New Dimension to Grain Demand

A significant and growing portion of both wheat and rice in Bangladesh is now being diverted to the feed sector. The livestock and aquaculture industries have emerged as major consumers of broken rice, with industry estimates placing feed-grade rice usage at over 3 million tonnes. This structural shift is adding a new demand layer to the country's grain import requirements.

The diversion of foodgrains for feed is not unique to rice. Wheat is also being channelled into animal feed supply chains, further tightening the balance between food-grade and feed-grade availability. As Bangladesh's livestock and aquaculture sectors continue to expand, feed demand is likely to remain a persistent upward pressure on total grain import volumes.

Bangladesh Port Congestion Compounds Logistical Strain

The sharp rise in foodgrain imports has placed considerable strain on Bangladesh's port infrastructure. Bangladesh port congestion has intensified, with vessels now taking more than double the usual time to discharge cargo. The delays are attributed to logistical bottlenecks at major entry points, where throughput capacity is struggling to keep pace with the higher import volumes.

Extended vessel waiting times are raising demurrage costs and compressing margins for traders, many of whom are already operating in a tight cost environment. The congestion problem is likely to persist through the remainder of the marketing year unless port authorities implement operational improvements or divert traffic to secondary terminals.

Russia Dominates Supply, but Competition Grows

Russia continues to be the dominant origin for Bangladesh wheat imports, accounting for approximately 55% of the country's total wheat procurement. The Black Sea corridor remains the most cost-competitive route for bulk wheat shipments into Dhaka, supported by Russia's position as the world's largest wheat exporter.

However, suppliers from the United States, Europe, Argentina, Brazil and Australia are steadily increasing their market share in Bangladesh. The diversification of origins reflects both buyer strategy to reduce single-source dependency and competitive pricing from alternative exporters seeking to expand their presence in the South Asian market.

Structural Challenges Weigh on Domestic Output

Bangladesh's agricultural sector continues to face structural headwinds that limit domestic food production. Key constraints include the non-availability of high-quality seed varieties, chronic seed shortages, soil salinity in coastal growing regions and limited awareness among farmers about disease outbreaks and pest management.

These production-side vulnerabilities ensure that Bangladesh will remain structurally dependent on imports to meet its foodgrain requirements. Without significant investment in agricultural research, seed development and extension services, the gap between domestic output and consumption demand is unlikely to narrow in the near term.

Outlook for Bangladesh Wheat Imports

The trajectory of Bangladesh wheat imports in the second half of the marketing year will be shaped by several factors: the pace of private sector procurement, the government's tender activity for both wheat and rice, global price movements and the capacity of the country's port infrastructure to handle elevated volumes.

With the USDA wheat consumption estimate at 8 million tonnes and domestic production covering only a fraction of demand, import dependency is set to remain elevated. The growing role of the feed sector, combined with evolving dietary patterns and persistent food inflation, points to a structurally bullish demand environment for grains in Bangladesh.

Market participants will be closely monitoring rice demand in Bangladesh alongside wheat flows, as both commodities are increasingly interlinked through substitution effects and feed-sector competition. The foodgrain import surge that defined the first half of 2025-26 shows no signs of abating, and the implications for global grain trade flows are significant.

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