Second US wheat shipment of 60,802 tonnes docks at Ctg's port

Bangladesh received its second consignment of wheat from the United States today (3 November) under a government-to-government (G2G) contract, part of Dhaka's broader strategy to reduce its trade deficit with Washington and diversify its food grain sources.

A bulk carrier carrying 60,802 tonnes of US wheat arrived at the outer anchorage of Chattogram Port, following a first shipment of 56,959 tonnes on 25 October. 

With the latest delivery, the total import of US wheat under the ongoing arrangement now stands at over 1.17 lakh tonnes, according to the Ministry of Food. Testing of the newly arrived grain has begun, and unloading will start once clearance is issued.

Photo: Focus Bangla

This marks Bangladesh's first wheat import from the US in nearly seven years, initiated through a five-year memorandum of understanding (MoU) signed in July 2025 between the Ministry of Food and US Wheat Associates. The MoU commits Bangladesh to importing 700,000 tonnes of premium-grade wheat annually. 

Officials said the purchase is part of a wider trade realignment effort to reduce the $6 billion deficit with the US and secure favourable tariff treatment for Bangladeshi exports, especially ready-made garments. The US wheat import is also intended to reduce dependency on traditional sourcing regions like Russia and Ukraine.

Pricing and procurement questions

Under the deal, Bangladesh's food ministry signed two G2G contracts with a US agency to purchase a total of 440,000 tonnes of wheat. 

The first covered 220,000 tonnes at $302.75 per tonne, and the second, approved by the Cabinet Committee on Government Purchase on 7 October, secured an equal amount at $308 per tonne. Both are on a Cost, Insurance, Freight (CIF) Liner Out basis.

First US wheat shipment arrives at Ctg Port

Officials said the higher price reflects the superior quality and higher protein content of US wheat. But business circles in both countries have questioned the structure and cost of the deal, pointing to the involvement of a Singapore-based intermediary, Agrocorp International Pte Ltd, in what was supposed to be a direct G2G transaction.

According to the arrangement, the Directorate General of Food is the buyer and Agrocorp, the seller, was authorised by U.S. Wheat Associates to supply the grain. Payment will be made to Agrocorp's bank account in Singapore via an irrevocable letter of credit from Sonali Bank.

Critics argue this setup adds unnecessary cost and undermines transparency. They note that earlier this year, Bangladesh imported 50,000 tonnes of wheat from a UAE-based company at $275 per tonne, making the US wheat up to $33 more expensive. 

Some US-based exporters have also written to Bangladeshi officials, warning that the use of a non-US intermediary contradicts the MoU's spirit and undermines Washington's goal of promoting direct trade with Dhaka.

Concerns have also emerged that the transaction structure could distort trade statistics. Because the payment and invoicing are being routed through Singapore, the US may record the sale as an export to Singapore rather than to Bangladesh. 

If so, the shipment might not contribute to reducing Bangladesh's reported trade deficit with the US or qualify for tariff benefits tied to direct bilateral trade.

Government defends the arrangement

The Ministry of Food has dismissed the criticism, saying the procurement process aligns with the MoU and was conducted with full transparency. Food Ministry Adviser Ali Imam Majumder said the arrangement remains valid under US oversight.

An official familiar with the discussions said the agreement was signed with U.S. Wheat Associates, while Agrocorp International is acting as their local agent. The memorandum of understanding was signed in the presence of the US embassy representatives, who witnessed the process. According to officials involved, the handling of payments, whether through Singapore or the USA, is an internal matter on the exporter's side.

They added that the G2G wheat deal is expected to help narrow Bangladesh's trade gap with the United States and is part of a broader import strategy encompassing agricultural commodities like cotton and soybeans, alongside aviation purchases, including the government's ongoing order for 25 Boeing aircraft.

The United States remains Bangladesh's largest single export destination, purchasing nearly $10 billion in goods annually, mostly garments, while Bangladesh imports about $4 billion, mainly machinery, cotton, and agricultural products. 

Officials said the wheat import programme should be viewed not just as a food procurement effort but as a strategic tool to strengthen bilateral trade ahead of Bangladesh's graduation from least developed country (LDC) status in 2026.

As Bangladesh deepens economic ties with the US, the renewed flow of American wheat through Chattogram Port signals both a symbolic and practical step toward trade balance. But as questions over cost, intermediaries, and classification persist, policymakers will be closely watching whether such deals can truly narrow the deficit and deliver the expected economic dividends.