Bangladesh resumes US corn imports after 8 years

Bangladeshi feed millers have imported corn from the United States for the first time in eight years, citing competitive prices, quality considerations and broader efforts to narrow the bilateral trade gap.

The shipment, carrying 57,855 tonnes of corn, arrived at Chattogram port yesterday, according to a press release from the US Embassy in Dhaka. The last such import from the US was in 2018.

Traders said US corn was priced $3 to $5 per tonne cheaper than corn from Bangladesh's usual suppliers, while meeting quality requirements.

Corn is Bangladesh's second-largest grain crop after rice in terms of acreage and production.

Even so, the country remains heavily dependent on imports to meet feed demand.

The renewed corn imports come amid broader trade engagement between the two countries. The US had earlier reduced its reciprocal tariff rate for Bangladesh to 20 percent from an initial 37 percent after Dhaka agreed to increase imports from the US to help narrow an annual trade gap exceeding $6.2 billion.

Bangladesh has also signed a memorandum of understanding to import 660,000 tonnes of US wheat, of which around 300,000 tonnes have already been received.

LONGER ROUTE BUT LOWER PRICE

According to a United States Department of Agriculture report, Bangladesh imported about 93 percent of its corn from Brazil in the 2024-25 marketing year, followed by 4 percent from Argentina and 2 percent from Pakistan.

Brazilian corn has long been preferred for its price competitiveness and yellowish colour, which feed producers believe improves the appearance of pellet feed, states the report.

Rakibur Rahman Tutul, managing director of corn importer Nahar Agro Group, said the company opted for US corn this year after finding it offered the best balance of price and quality through a bidding process.

He said Brazilian corn was priced at around $250 per tonne, while US suppliers undercut that by $3 to $4 per tonne.

Although shipping from the US takes longer, around 46 days compared with about 30 days from Brazil or Argentina, the company determined it had sufficient inventory to absorb the delay, he added.

Tutul said such decisions depend heavily on supply-chain planning, noting that longer shipping routes are avoided when stock levels are tight.

He also noted that assurances from US agricultural representatives regarding logistical and quality support helped reduce risks.

While the decision also aligned with efforts to narrow Bangladesh's trade deficit with the US, Tutul stressed that cost savings remained the primary consideration.

Sourcing strategies, he said, change from year to year depending on crop quality, regional demand and price competitiveness.

Moshiur Rahman, managing director of Paragon Group, said the company sources raw materials from multiple countries, including Brazil, Argentina and the United States, depending on prevailing prices.

A price difference of $4 to $5 per tonne can translate into savings of $400,000 to $500,000 per shipment, he said. Paragon previously sourced from the US before shifting to Brazil and Argentina when prices there fell, and has now returned to the US as prices became competitive again, he informed.

Rahman said sourcing decisions are reviewed monthly, and shipments may come from multiple origins within the same month. Regardless of supplier interest, he added, the company's priority is securing quality raw materials at the lowest possible price.

US Embassy Dhaka Agricultural Attaché Erin Covert visited the port yesterday to welcome the shipment alongside representatives of Nahar Agro Group, Paragon Group and Nourish Poultry and Hatchery Limited.

An official from United Grain Corporation, a major US grain exporter, said the company was honoured to be part of the first US corn shipment to Bangladesh in eight years and expressed optimism about supplying US grains to the country in the years ahead.