Bangladesh Strengthens Trade Ties with U.S. Through Major Wheat Purchase

In a move aimed at easing trade tensions with the United States, Bangladesh's government has sanctioned the purchase of approximately 220,000 metric tons of American wheat, officials confirmed on Wednesday. The acquisition is part of an agreement that sees U.S. wheat sold at $302.75 per ton by a trading firm based in Singapore.

While Bangladesh traditionally sources lower-cost wheat from the Black Sea region, this deal is part of a broader strategy, solidified by a memorandum of understanding in July, to import 700,000 tons annually over five years from the U.S. The American grain is praised for its high protein content.

Although Black Sea wheat remains cheaper, a Dhaka-based trader noted the premium on U.S. wheat is justified by its protein and gluten levels, essential for quality flour production. Bangladesh also recently boosted imports of American goods, including 25 aircraft from Boeing, in efforts to mitigate trade strain.

(With inputs from agencies.)