Miller Magazine Issue: 153 September 2022

94 COUNTRY PROFILE MILLER / SEPTEMBER 2022 On June 23, 2022, the Bangladesh government reduced the rice import tariff from 62.5 percent to 25 percent to encourage the private sector to im- port. The reduced tariff rate will remain in effect until October 31, 2022. From July 1, 2022, the government imposed a ban on the export of aromatic rice to control its price in the local market. Following the export ban or- der, the Ministry of Commerce canceled the export permissions it gave earlier to 41 private companies. According to the Bangladesh Export Policy, Ban- gladeshi exporters can export 25 types of aromatic rice, subject to special approval from the Ministry of Commerce. On average, Bangladesh exports 10 thousand tons of aromatic rice annually. WHEAT PRODUCTION For the 2022/2023 season, USDA forecasts wheat harvested area at 310 thousand hectares and pro- duction at 1.10 million tons. Wheat planting in Ban- gladesh occurs in November and December, with harvesting in March and April. Reduced duration of the winter season and lack of promising varieties affect wheat yields and therefore, area and produc- tion are gradually decreasing. USDA estimates MY 2021/2022 wheat harvested area at 320 thousand hectares, with production at 11.3 million tons. The higher international price of wheat, supply chain disruptions, the Russia-Ukraine war, and In- dia’s wheat export ban jointly contributed to record high wheat and wheat flour prices in Bangladesh. The depreciation of the Bangladesh taka against the U.S. dollar is also increasing the price of wheat flour, as most wheat is imported. USDA forecasts wheat imports at 7 million tons for the 2022/2023 season. It revised its wheat import forecast down from its previous projection on low- er supply and higher prices of wheat in the world market. For 2022/2023, Post’s total wheat consumption forecast is 8.5 million tons. Post reduced its wheat consumption forecast from its previous forecast due to lower imports and high prices of wheat in the do- mestic market. Bangladesh exports substantial volumes of wheat- based products. According to the Export Promo- tion Bureau of Bangladesh (EPB), the export value of wheat-based products in Bangladesh fiscal year (FY) 2021/22 was around $250 million, an increase of about 130 percent from FY 2016/17. CORN PRODUCTION Corn planted in November/December 2021 and harvested in March/April 2022 is the first crop of the 2022/2023 season. There are some areas in the country where farmers also grow summer corn, which is planted in March/April and harvested in June/July. USDA’s 2022/2023 corn harvested area forecast is 560 thousand hectares. For MY 2022/2023, USDA forecasts corn production at 5 million tons. Farmers had a very good harvest of winter corn in the last Rabi season. For 2021/2022, USDA estimates corn area harvested at 550 thousand hectares and pro- duction at 4.9 million tons. USDA’s 2022/2023 corn import forecast is 2.2 mil- lion tons. According to industry, the average annual demand for corn in Bangladesh is 7 to 8 million tons, while domestic production meets about 65 percent of the total demand. For MY 2021/2022, USDA esti- mates corn imports at 1.95 million tons. According to the Trade Data Monitor, LLC (TDM), India is the leading source for imported corn. In the 2021/2022 season, Bangladesh imported 83 percent of corn from India with the remainder from Brazil. Importers look to India for imports due to its geographic proximity, cheaper transportation and logistics, and shorter shipment time. CORN CONSUMPTION CONTINUES TO GROW The cattle and poultry feed industries in Bangla- desh are the major consumer of corn. According to the Feed Industries Association of Bangladesh (FIAB), corn accounts for 60 percent of feed ingre- dients while soybean meal and broken rice account for 30 percent and 10 percent, respectively. Due to the higher price of corn, FIAB stated its members may replace some corn with broken rice and bran. “However, Post believes overall corn consumption will rise due to the expansion of the poultry and cat- tle industries in Bangladesh,” USDA said in its last report. For the 2022/2023 season, USDA forecasts total corn consumption at 7.05 million tons. SOURCES: https://www.fao.org/faostat/en/ https://www.fas.usda.gov/ https://www.worldbank.org/en