Bangladesh has formally approved the import of 220,000 metric tons of U.S. wheat in a government-to-government purchase intended to reduce trade friction with the United States. Valued at $308 per ton, the wheat will be supplied through Agrocorp International, a Singapore-based firm authorized by U.S. Wheat Associates. The decision was ratified by Bangladesh's Cabinet Committee on Government Purchase earlier this week.

The move follows a broader memorandum of understanding signed in July that commits Bangladesh to buying 700,000 metric tons of U.S. wheat annually over the next five years. The goal is to diversify grain sources away from traditional suppliers in the Black Sea region and deepen bilateral trade with the U.S.

The South Asian nation has historically relied on lower-cost wheat imports from countries like Russia and Ukraine. However, it also brings in limited volumes of premium-grade U.S. and Canadian wheat for blending and quality enhancement, especially for its growing food processing sector. Until recently, Bangladesh had also received American grain through USAID food aid programs, which were dismantled earlier this year by the Trump administration.

The wheat purchase is part of a wider initiative by Dhaka to reduce its $6 billion trade deficit with Washington and improve market access for Bangladeshi exports-especially ready-made garments, which represent the bulk of its U.S.-bound trade. In a parallel development, Bangladesh secured a reduction in U.S. tariffs on its exports from a proposed 37% down to 20%, a significant relief for its apparel sector.

In addition to wheat, Dhaka is ramping up imports of U.S. agricultural commodities, including soybeans and cotton, and has also placed an order for 25 Boeing aircraft, signaling stronger economic engagement between the two nations.

The Cabinet also authorized the purchase of 50,000 metric tons of Indian rice at $359.77 per ton via an international tender, part of a broader effort to manage domestic food prices as global grain markets remain volatile.

While this week's U.S. wheat deal represents a symbolic step toward trade normalization, it also has tangible implications for U.S. agriculture. With U.S. wheat producers seeking new markets amid fluctuating global demand and rising input costs, this agreement offers a foothold in a strategically located and growing South Asian economy.