Bangladesh has struck a $68 million government deal to buy 220,000 metric tons of U.S. wheat, aiming to ease trade tensions caused by U.S. import tariffs. The Cabinet Committee on Government Purchase approved the deal on Tuesday, with Singapore’s Agrocorp International, authorized by U.S. Wheat Associates, set to supply the grain at $308 per ton. This move supports food security while carefully managing diplomatic relations.
Building on a July MoU, Bangladesh has committed to a five-year plan to import 700,000 metric tons of U.S. wheat each year. This strategic decision aims to diversify grain sources and strengthen trade relations amidst tariff disputes. The most recent agreement, valued at $68 million for 220,000 tons, was finalized on Tuesday.
Amidst tariff chaos, Bangladesh relies on affordable Black Sea wheat for bulk imports, supplementing it with premium U.S. and Canadian grains for better blends, until Trump’s 2025 USAID shutdown cut off American food aid.
Bangladesh, aiming to address its $6 billion U.S. trade deficit, leverages the wheat agreement to negotiate more favorable terms for its key exports, mainly ready-made garments that constitute the majority of shipments to the United States.
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Bangladesh has secured a reduction in tariffs from 37% to 20%, offering much relief to the exporters.
Dhaka is increasing imports of wheat, soybeans, and cotton, and has ordered 25 Boeing aircraft. It also approved the purchase of 50,000 tons of rice from an Indian trader at $359.77 per ton, via tender, to manage staple grain prices.
