DHAKA: The government decided to buy 70,000 metric tonnes of wheat from neighbouring India to increase the stock of food under a contingency measure.

Officials said the total cost of the wheat import would be Tk 162.42 crore at the rate of $332.90 per MT. The finance would be allocated for purchasing the wheat from the allocation of the current fiscal year.

A private organization, Messrs LMJ International Ltd of India, will supply 60 percent of the wheat consignment through Chittagang and 40 percent through Mongla seaport respectively.  

Director-General of Food Department Ahmad Hossain Khan told banglanews that the government called international tender to buy wheat and three firms took part in the bidding process.

Among them, India’s Messrs LMJ International Ltd company got the tender for its lowest bid.

Hossain said, “We have decided to import Soft Red Winter (SRW) wheat.”

According to the September 15 report on daily food-grain situation, the government has a stock of only 72,000 metric tonnes of wheat.

Earlier, the food department took the decision to fulfill the target of importing 750,000 mt wheat and 300,000 mt rice for the current 2010-2011 fiscal year.

Of the amount of wheat, Russia would export 300,000 metric tonnes by G to G (govt. to govt.) agreement and the rest have to be collected by floating international tender.

Sources said the Russian government prohibited export of any kind of food-grains, including wheat, following droughts and rare dry weather in the summer season there.

Besides, some organizations expressed inability to export wheat for its high price on the international market despite reaching agreement with the government.

BDST: 1040 HRS, SEPT 23, 2010