Govt to import wheat from US at higher price to gain 'tariff concessions'

The Cabinet Committee on Public Purchase has approved a proposal to import 220,000 tonnes of wheat from the United States at a comparatively higher price, aiming to secure "tariff concessions" on Bangladeshi goods in the US market.

The wheat, which reportedly contains a higher protein level, is being bought as part of Bangladesh's strategy to strengthen its bargaining position in negotiations to reduce the 35% tariff currently imposed by the US on Bangladeshi exports, said Finance Adviser Dr Salehuddin Ahmed.

The approval came during a committee meeting held at the Secretariat today (23 July), chaired by the finance adviser.

Briefing reporters after the meeting, he said, "We are purchasing this wheat for three reasons – first, to gain an advantage in tariff negotiations with the US. Second, to diversify our wheat import sources; and third, because the wheat has a slightly higher protein content."

When asked about the price and protein level of the wheat, the adviser said both were slightly higher compared to typical imports.

According to the proposal placed by the food ministry, the wheat will be procured under a government-to-government (G2G) arrangement from a US government agency. The purchase price has been set at $302.75 per tonne, amounting to a total expenditure of Tk817.57 crore for the entire consignment. This translates to Tk37.20 per kilogram.