Punjab firm wants to export wheat to Bangladesh: Official

Indian Punjab Agri Export Corporation Ltd has expressed its willingness to export wheat to Bangladesh with due endorsement of the Indian central government, a food ministry source said.

The food ministry recently sent a letter to the commerce ministry to take necessary measures to import wheat from Punjab Agri Export Corporation Ltd under Government to Government initiative. The memo was signed by senior assistance secretary of food ministry, Muhammad Mahbubur Rahman.

Earlier, the High Commissioner of Bangladesh in New Delhi Muhammad Imran informed the foreign procurement department of the ministry of food about the Punjab Agri Export Corporation’s intention. On May 15, the Indian government restricted export of wheat for commercial sales but the government to government purchase was not restricted.

In the food ministry letter, the Punjab Agri Export Corporation Ltd India expressed its keen interest in supplying wheat to Bangladesh.

The Ministry of food imports 5 to 6 lakh tonnes of wheat every year through international tenders. Besides, 6 to 7 lakh tonnes of wheat is imported through G to G basis to handle any emergency and maintain food security. A total of more than 60 lakh tonnes of wheat are imported per year of which more than 50 lakh tonnes are imported by the country’s private traders from the neighbouring country.

The food ministry letter also informed the commerce ministry to seek approval of the government so that Bangladesh can import wheat from Punjab or any other public organisation as soon as possible.

Food Minister Sadhan Chandra Majumder told the Business Insider Bangladesh there is no restriction for Bangladesh to import wheat and rice from neighbouring India.

So, there is no problem of importing enough wheat by the Bangladesh government from the Indian Punjab Agri-Export Corporation, he added.

Punjab Agri Export Corporation Limited (PAGREXCO) is a government enterprise established by the Government of Punjab in the year 1997 as the nodal agency for agricultural export from the state of Punjab. The company works for export of fresh and processed agricultural produce, infrastructural development and policy implementation in the state. It is a subsidiary of Punjab Agro Industries Corporation.

On June 11, the government of Bangladesh had requested India to approve shipment of 10 lakh tonnes of wheat without delay and said that Letters of Credits (LCs) were already opened before India banned wheat exports.

The High Commission of Bangladesh in New Delhi conveyed this in a memo written to the Ministry of External Affairs of India.

Meanwhile, Bangladesh has emerged as one of the biggest wheat importers in the world, with USDA’s forecast of 7.6 million tonnes in the 2022-23 fiscal year as against 7.4 million tonnes in 2021-22.