The prices of wheat are on the rise, affecting consumers due to increased US dollar prices and international market trends. The rice prices increased by 2% to 5.61%, while wheat prices per kilogram rose by 9.20% to 14.29%. Bangladesh relies significantly on the global market for wheat, with 85% of its annual demand of 70-75 lakh tonnes being met through imports.
The forex crisis has contributed to a rise in the price of the US dollar, impacting the cost of wheat imports. The country’s forex reserves declined from $40.7 billion in August 2021 to $21.05 billion on October 5, 2023. Additionally, the local currency, Taka, has depreciated by about 28% since January 2022.
The combination of increased global wheat prices, forex challenges, and delayed imports has led to higher prices for consumers in Bangladesh, with reports of loose flour being sold at Tk 48-50 per kg in Dhaka and Chattogram. The situation may have broader implications on essential commodities, as both rice and wheat prices are trending upwards.