Food import bill rises on wheat, edible oil surge

Rising imports of wheat and edible oil drove up food import bill in the first two months of the fiscal year, offsetting a sharp decline in rice imports as surging food inflation piles fresh pressure on consumers.

According to Bangladesh Bank’s September 2026 economic report, food grain import values rose 17.13% year-on-year during July-August of the fiscal 2026-27. 

Consumer goods imports jumped 29.44% over the same period, propelled by higher spending on edible oil.

The costlier imports coincide with a rebound in inflation. 

Bangladesh Bureau of Statistics (BBS) data cited in the report shows food inflation climbed to 7.22% in September from 7.02% in August, snapping a two-month cooling trend and squeezing household budgets. 

Overall inflation also edged up from 8.26% to 8.34%.

Food inflation had declined to 7.16% in July and 7.02% in August before rising again in September, signalling renewed price pressures on consumers.

However, a higher inflation rate does not necessarily mean that prices of all essential commodities increased during the month. 

It indicates a faster year-on-year rise in the overall food price index.

“For consumers, the distinction is important. A lower inflation rate means prices are rising more slowly than before; it does not necessarily mean that prices have fallen or that household purchasing power has recovered,” said economist and researcher Dr Jahangir Alam Khan.

Bangladesh’s food grain import pattern shifted significantly at the beginning of FY27, with higher wheat imports more than offsetting the decline in rice imports in value terms.

According to Bangladesh Bank data, the value of food grain imports rose 17.13% to US$267 million during July-August, compared with $228 million in the corresponding period of FY26.

Rice imports plunged 78.30% to $12 million from $55 million a year earlier.

In contrast, wheat imports surged 47.35% to $256 million from $173 million during the same period last year.

The contrasting trends point to a shift in the composition of food grain imports rather than a broad-based increase across all major grains.

Meanwhile, the value of consumer goods imports jumped 29.44% to $952 million during July-August of FY27, compared with $735 million a year earlier.

Edible oil accounted for much of the increase, with its import value soaring 61.29% to $609 million from $378 million in the corresponding period of FY26.

Sugar imports also increased by 14.55% to $140 million from $122 million a year earlier.

Bangladesh Bank attributed the sharp rise in edible oil import costs partly to higher international vegetable oil prices, indicating that the increased spending did not necessarily reflect a corresponding rise in import volumes.

Higher global prices can push up the country’s import bill even when the quantity of goods purchased remains unchanged, adding to foreign exchange requirements and potentially increasing costs for domestic consumers.

The figures highlight the challenge of maintaining affordable supplies of essential commodities while managing exposure to international price fluctuations.

With food inflation rising again, the extent to which higher import costs translate into retail prices will depend on domestic supply conditions, distribution costs and market dynamics.