The US Department of Agriculture (USDA) has indicated a substantial rise in wheat consumption in Bangladesh for 2023-24.
This projection is primarily attributed to increased imports and a renewed demand for flour, which has spurred a reduction in wheat prices.
In its recently published report, the USDA projects a potential total consumption of 68 lakh tonnes of wheat during the marketing year that commences in July 2023. This estimate reflects a 5% escalation from the agency’s prior assessment.
The fiscal year 2022-23 saw a noteworthy 16% year-on-year decline in the USDA’s calculations of wheat consumption in Bangladesh.
The factors contributing to this decline included elevated local wheat prices and decreased imports. Consequently, the consumption of staple flour varieties known as ‘atta’ and ‘maida’ in Bengali households was notably affected.
In the preceding marketing year, Bangladesh’s feed industry curtailed its feed quantities due to the soaring prices of wheat.
However, there has been a gradual amelioration of this situation since February.
All categories of wheat flour prices have been on a consistent downtrend after attaining a historic pinnacle the previous month.
The USDA has upwardly revised its projections for wheat production in Bangladesh, estimating an output of 11 lakh tonnes.
This adjustment is grounded in the agency’s anticipation that farmers will maintain their cultivation acreage during the 2023-24 marketing year.
The driving force behind this expectation is the favorable pricing witnessed in the preceding year.
Bangladesh’s wheat consumption is poised to witness a significant upswing in the upcoming years, stimulated by increased imports and revived demand for flour. These dynamics and the USDA’s revised projections for wheat production paint a dynamic picture of the country’s wheat sector for the year ahead.