Wheat price shoots up

The wholesale price of wheat has shot up by Tk200 per maund (37.32 kg) in a week.

Market insiders said the price of wheat – one of the staples – has gone up due to manipulation of importers and traders, who cite price hikes in the international market.

During a visit to Khatunganj on Thursday, the large wholesale market for consumer goods in Chattogram, The Business Standard found Canadian wheat selling at Tk1,250 per maund, which was Tk1,050-1,060 the previous week.

Experts said traders increased the price of the product in a week since the demand increased after the end of lockdown.

Meanwhile, Indian wheat price has also increased, selling at Tk1,060, an increase by Tk130 in a week.

Traders said the wheat sold in the market at present was booked three to five months ago, when the price was low in the international market. There has been no recent price hike, so price increase in the domestic market citing the international market is not logical.

It would take at least two to three months for the wheat currently booked at higher prices to reach the domestic market, they added.

Abdur Razzak, proprietor of Ismail Traders at Khatunganj, said the wheat market has been in a dull state for a long time. Its market remained stable even after the Eid-ul-Azha holidays, but it has suddenly jumped since last week.

Another businessman said the month of Ramadan and Eid did not have much impact on the prices of the product. The price was stable at that time as there was a huge stock of wheat against the demand.

However, the importers and big traders have increased the price of the product after Eid-ul-Azha to destabilise the market, he added.

Meanwhile, according to a review of the last six months of wheat prices in the world market on the website of Index Mundi, the booking price of wheat was $237.94 per tonne in January and in February, it was $240.81.

In March, the price was $229.89 and it was $239.94 in April which was $278.45 in May. Last June, one tonne of wheat was booked at $238.77.

According to Chattogram Customs, more than 50 companies, including Abul Khair, Meghna Group, City Group, Aman Group, BSM Group, S Alam, Deshbandhu, TK Group, import wheat in the country.

Traders said Bangladesh usually imports wheat from Canada, Russia, Ukraine and India. Currently Canadian and Indian wheat is in the market. The price of wheat in the domestic market has been declining for the last three-four months.