The Ukraine crisis has worried local food importers as it has sent jitters to the world's grain markets, leading food traders told the FE Sunday.
Bangladesh mainly imports wheat, oil seed and yellow peas from Ukraine. It imports around 30 per cent of its total wheat from the country.
Food importers said the prices of wheat, corn, oil seed and yellow peas have already risen significantly in the global market as a result of the Ukraine crisis.
The crisis deepened following a referendum by the Crimean parliament to be held on March 16 whether it will join Russia.
Ukraine was the fourth biggest seller of corn last year and is set to be the sixth largest wheat supplier in 2014. Abul Bashar Chowdhury, chairman of the Masud & Brothers in Chittagong said: "We're extremely worried over the developments in Ukraine as it has raised the global gain prices substantially."
The prices of wheat in the global market have risen by around 15 per cent to $360 a tonne after the crisis.
The prices of yellow peas rose to US$ 410 a tonne, nearly $40 up than that of the previous rate.
The prices of oil seed have risen to $600 a tonne, around $70 up.
Chowdhury said local food importers are not getting any advance sales offer from Ukraine and Russia following the crisis over Crimea, a peninsula at the Black sea.
Prices of agricultural produces in Ukraine rose possibly as its farmers held back grain to protect themselves against the country's falling currency, he noted.
"This is the right time to get advance sales offer from Ukraine, but we're not getting the same," Chowdhury said.
Exports from Ukraine and Russia begin from June-July period. But brokers contact with the potential buyers during January-February period for advance sales.
Md Ali, another food grain importer at the Imam Group said: "There is hardly available alternative competitive source for procuring wheat."
"All markets have been up because of the crisis," Mr Md. Ali commented.
He said buyers across the globe fret over whether the Ukraine will keep up its large exports of wheat and corn following Russia's occupation of the Crimean region.
He said the price of wheat for delivery in May rose by as much as 5.9 per cent to $6.38 a bushel on the Chicago Board of Trade - the biggest rise for almost 18 months.
Corn for delivery in May rose by up to 3.7 per cent to a six-month high of $4.81, he said quoting from international media.
In the meantime, the government's Food Department said it has already procured 200,000 tonnes of wheat bought last year.
"Right at this moment, we've no deals with Ukraine for procuring staples," said Badrul Hassan, a director at the Food Department.
