Despite Falling Global Wheat Prices, Flour Prices Rising Abnormally in Country

Staff Correspondent

While the price of wheat in the world market is continuously declining, the price of flour in the country is increasing rapidly. Consumers complain that this is just a game of traders to make huge profits, and the government is not taking any effective action against the syndicate.

A record amount of wheat has been imported in the past year—about 7.3 million tons. This year too, the import trend is strong. However, the opposite picture is in the market: In just a week, the price of flour per kilogram has increased by 5 to 10 taka. Now, companies are selling their packaged flour at 60 taka per kilogram, where it was 50-52 taka earlier. Loose flour is being sold at 45 to 50 taka depending on the quality, which is 5 taka more than before. The price of the most sold two-kilogram packet has also jumped from 110 taka to 130 taka.

As a result, people with limited incomes are suffering the most. Because, after rice, flour is the most widely consumed food product in the country.

According to Index Mundi, the price of wheat per ton in September last year was $268-272, which has now fallen to $214-219. Wheat prices have been falling steadily since the Russia-Ukraine war. Where prices reached $500 in 2022, they are now less than half.

But the picture in the domestic market is the opposite. Although the price of flour was increased very rapidly during the war, consumers did not get any benefit even though the price decreased in the international market later. The dollar crisis, the LC complications – all have been resolved to a large extent now. Still, prices are being increased irrationally.

BSM Group Chairman Abul Bashar Chowdhury himself admitted that interest in imports has increased due to the fall in wheat prices in the world market. City Group Director Biswajit Saha, however, gave a different explanation – he claimed that production costs have increased due to the imposition of new taxes (AIT, turnover tax) in the budget.

But SM Nazer Hossain, senior vice-president of consumer rights organization CAB, says these are mere excuses. In his words, “Even though wheat prices were low for a long time, the companies did not reduce the prices. But when prices rose during the war, they took the opportunity to increase the prices of flour abnormally. Now they are again increasing the prices unnecessarily. In fact, the policy of the traders is like ‘beating the bush first’. They know that the government will not do anything. So a few companies are controlling the market as they wish.”

Only 14-15 percent of the country’s total wheat demand is produced locally, the remaining 85 percent has to be imported. In 2024 alone, about 7.275 million tons of wheat were imported, which is 34 percent more than the previous year—the highest in the last eight years. Imports are strong this year too, with importers reporting that more than 4.5 million tons have already arrived in the first nine months.

Demand is increasing, supply is also at record levels. However, prices are being artificially increased in the market, which is a clear indication of a syndicate.

According to analysts and consumer organizations, the government’s silence has left the market uncontrolled. Consumers are not getting the positive impact of the international market, but a few influential companies are controlling the market and increasing prices as they wish. As a result, people with limited incomes are being severely affected.

Overall, the price of wheat in Bangladesh is not in line with the world market. The government’s silence and the greed of traders for excessive profits – the burden of these two is being borne by ordinary consumers.