Bangladesh – Corn Import Market Worth $453 Million


Jul 26, 2023 | Agricultural Markets News

Reading time: 2 minutes

In terms of acreage and production, Corn is the second-largest grain crop in Bangladesh. It is a cash crop due to its good yield potential and high market price. Farmers grow Corn in the summer and winter seasons, with approximately 85 percent of the total Corn produced in the winter. Winter Corn is planted in November and December and harvested in April and May, while summer Corn is sown in March and April and harvested in August and September. The production and demand for Corn are increasing in Bangladesh as the demand for poultry, dairy, and fish feed rises.

About 90 percent of Corn is used in the feed industry, while some are used to make starch and flour. The Corn planted in November-December 2022 and harvested in March-April 2023 is the first crop of MY 2023/24. For MY 2023/24, Post forecasts Corn harvested area and production at 570 thousand hectares and 5.0 million MT, respectively, assuming good weather, timely application of fertilizer, and proper irrigation. The Post’s estimate of MY 2022/23 Corn harvested area is 560 thousand hectares, with production at 4.9 million MT, the same as the USDA official estimates.

Domestic Corn prices continue to increase to meet feed industry demand, with high global prices also driving up local prices. In February 2023, Corn’s wholesale and retail prices reached BDT 36.37 ($0.34) and BDT 39.17 ($0.37) per kilogram, respectively, their highest levels since 2017. In February 2023, wholesale and retail prices were up approximately 35 percent over last year.

For MY 2023/24, Post’s total feed and residual Corn use forecast are 6.7 million MT, on increased poultry and cattle feed production. In MY 2022/23, Post estimates feed and residual use at 6.2 million MT, 5 percent lower than the USDA official estimate. Due to the high poultry and cattle feed price, many small farms have shut down in this MY, resulting in lower demand. Usually, Bangladesh requires around 7-8 million MT of Corn annually, of which around 5 million MT are produced domestically; the rest is imported. However, the feed industry consumes less Corn in the current MY due to decreased feed production.

Post’s forecast for MY 2023/24 FSI consumption is 600 thousand MT, up 9 percent from the MY 2022/23 USDA official estimate on increased Corn starch and syrup production. There is no official data for the FSI consumption of Corn in Bangladesh; however, Post contacts note that about six starch-producing companies in Bangladesh jointly consume about 200 thousand MT of Corn annually. The textile industry is the primary recipient of Corn starch. Corn is also used to make Corn syrup and glucose. Human consumption of Corn is also growing in many parts of the country. In MY 2022/23 Post estimates FSI consumption of Corn at 550 thousand MT, the same as the USDA official estimate.

Corn Trade in Bangladesh

According to AgFlow data, Bangladesh imported 2,619 tons of Corn from India in May 2023. For MY 2023/24, Post forecasts Corn imports at 2.4 million MT, up 9 percent from the MY 2022/23 USDA official estimate, on rebounding feed demand. Post estimates MY 2022/23 Corn imports at 2.1 million MT, down about 4.5 percent from the USDA official estimate, on reduced feed industry demand. India is the Major Exporters Since 2020, India has become the dominant Corn exporter to Bangladesh. In MY 2021/22, India supplied more than 83 percent of total Corn imports, with the remainder from Brazil.

In 2021, Bangladesh imported Corn worth $453 million, becoming the world’s 27th largest importer of Corn. In the same year, Corn was Bangladesh’s 38th most imported product. Bangladesh imports Corn primarily from India ($355 million), Argentina ($61.6 million), Brazil ($25.7M), Burma ($9.15 million), and Thailand ($764k).

Other sources: USDA

Try AgFlow Free

Access Free On Updates for Corn, Wheat, Soybean,
Barley, and Sunflower Oil.

No Credit Card Required & Unlimited Access In Time